Crypto exchange Coinbase faces SEC investigation over securities – Bloomberg News

A representation of a cryptocurrency is seen in front of the Coinbase logo in this example taken on March 4, 2022. Reuters/Dado Ruvik/Illustration/

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July 25 (Reuters) – The US Securities and Exchange Commission (SEC) is investigating whether Coinbase Global Inc. (COIN.O) allowed Americans to unfairly trade digital assets registered as securities , Bloomberg News reported on Monday.

A Coinbase spokesperson told Reuters that the company does not list securities on its platform, while the regulator declined to comment on the report.

The company’s legal head Paul Grewal said that Coinbase will be in talks with the SEC on the matter. “We are confident that our rigorous due diligence process — a process already reviewed by the SEC — keeps securities off our platform,” Grewal said.

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The Bloomberg report cites two sources as saying that ever since the crypto trading platform expanded the number of tokens, the SEC’s scrutiny has increased. (https://bloom.bg/3OyXrBk)

The investigation by the SEC’s enforcement unit precedes an investigation into an alleged insider trading scheme that came to light last week.

In the first insider trading case involving cryptocurrency, US prosecutors accused Coinbase’s former product manager Ishaan Wahi of sharing confidential information about upcoming announcements of new cryptocurrency assets that would allow Coinbase users to trade through its exchange. will allow.

In related civil charges, the regulator alleged that Wahi’s brother Nikhil Wahi and his friend Samir Ramani bought and sold at least 25 crypto assets for profit, nine of which were identified by the agency as securities.

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The SEC declined to confirm at the time whether it would take action to list the token deemed securities in the complaint against Coinbase.

The cryptocurrency platform has previously asked regulators to develop working regulations for digital asset securities.

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Reporting by Jaiveer Shekhawat, Jhanvi Nidumolu and Nivedita Hajra in Bengaluru; Editing by Sherry Jacob-Phillips and Arun Koyur

Our Standards: Thomson Reuters Trust Principles.

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