Coinbase is being investigated by the SEC over crypto listings. Just a few days ago, an ex Coinbase manager was charged for Insider trading. During that investigation, they found up to 7 cryptos they considered securities and now launched an investigation against Coinbase.
The U.S. Securities and Exchange Commission (SEC) is reportedly probing crypto exchange Coinbase, due to suspicions that it improperly let Americans trade digital assets that should have been registered as securities.
In a report written by Bloomberg, it’s reported that the SEC is investigating some of the tokens listed on the exchange after alleging that seven cryptocurrencies listed on the exchange were securities in an unrelated insider trading case brought against an Ex Coinbase manager.
SEC vs Coinbase
The SEC has previously criticized Coinbase, saying that the crypto exchange should “register with the regulator” due to the fact that some of the cryptocurrencies listed on the platform could technically be called securities.
However, Coinbase has since criticized the SEC. Earlier this month, Coinbase filed a petition to the SEC criticizing the state of cryptocurrency regulation in the U.S. Coinbase claims that the SEC has not made it effectively clear with their rules in defining what makes a crypto asset a security.
“Crypto assets that are securities need an updated rulebook to help guide safe and efficient practices. Crypto assets that are not securities need the certainty of being outside those rules.” Said Coinbase CPO, Faryar Shirzad.