CryptoWallCity vs MEXC Exchange

SEC Checks Coinbase for Alleged Listed Securities: Report

The United States Securities and Exchange Commission (SEC) is reportedly probing cryptocurrency exchange Coinbase, a publicly traded company it oversees, on suspicions that it has allowed Americans to trade. unregistered securities.

According to the report, the investigation preceded the insider trading lawsuit last week.

Bloomberg reported Monday that the regulator is investigating several tokens listed on the exchange. Last week, the SEC alleged that seven cryptocurrencies listed on Coinbase were securities in an unrelated insider trading case brought against a former product manager at the exchange.

SEC Chairman Gary Gensler also previously said he believes Coinbase should register as a national stock exchange, based on some of the cryptocurrencies it has listed.

For its part, Coinbase criticized the SEC for not providing clear rules to define how cryptocurrencies can be treated as securities. The exchange’s Director of Policy, Faryar Shirzad, said that applicable securities laws may not be suitable for cryptocurrencies.

CEO Brian Armstrong’s stated goal of listing every token an exchange could legally have seems to have its downside: According to two people Bloomberg spoke to, the SEC took a closer look. coinbase operations in the context of the increased number of tokens.

Coinbase’s asset portfolio page features over 200 tokens at press time on Monday.

Coinbase’s chief legal officer, Paul Grewal, said in response to a query from CoinDesk, “We are confident that our rigorous due diligence process — one that the SEC has reviewed — keeps securities from our foundation and we look forward to engaging with the SEC on this matter.”

An SEC spokesperson did not immediately return a request for comment.

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