Coinbase is facing scrutiny from the U.S. Securities and Exchange Commission (SEC) over several alleged unregistered securities on its platform.
According to a new Bloomberg report, the SEC’s scrutiny of Coinbase has increased with the volume of assets offered by the exchange.
Coinbase chief legal officer Paul Grewal said that the exchange is still confident that the SEC’s investigation won’t find any wrongdoing.
“We are confident that our rigorous diligence process – a process the SEC has already reviewed – keeps securities off our platform, and we look forward to engaging with the SEC on the matter.”
Grewal also disputed the SEC claims last week in a series of tweets.
“We 100% disagree with the SEC’s assertion that any of the crypto assets we list are securities.
Coinbase has a rigorous process to analyze and review each digital asset before making it available on our exchange – a process that the SEC itself has reviewed.”
In the wake of crypto’s most recent market crash, the SEC has been vigilant in attempting to increase retail consumer protection, according to the report.
Coinbase’s shares have dropped by 9.2% following the news, which predates last week‘s revelation of a suspected insider trading scheme.
“Coinbase shares fell $5.23 to $61.84 at 9:32 a.m. in New York on Tuesday and changed hands for as little as $60.91. The stock has lost almost three-quarters of its value this year.”
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