Key Takeaways
- The SEC is probing Coinbase to determine whether it let customers trade unregistered securities, Bloomberg has reported.
- The update follows the SEC’s claim that Coinbase lists “at least nine” securities as part of an insider trading scandal involving a former employee.
- Coinbase has denied that it lists securities and called for the SEC to reconsider how it determines whether an instrument is a security of not.
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Coinbase urged the U.S. financial regulator to rethink how it classifies securities in response to last week’s court filing.
Coinbase Reportedly Facing SEC Probe
The Securities and Exchange Commission has reportedly launched another attack on the cryptocurrency industry.
The U.S. financial regulator has set in motion an investigation to ascertain whether Coinbase let its customers trade cryptocurrency tokens that should have been registered as securities, Bloomberg has reported citing three people familiar with the matter.
It comes days after the SEC and Department of Justice jointly accused a former Coinbase employee and two of his associates of insider trading. The SEC said in the court filing that Coinbase listed “at least nine” crypto assets that could be classified as securities, echoing warnings the agency’s chair Gary Gensler has made on repeated occasions over the past year.
According to the Bloomberg report, the SEC has been keeping a close eye on Coinbase since it started to offer a wider range of…
