Coinbase Plunges After Announcement of SEC Probe
Jul 26, 2022 By MarketDepth
Coinbase Inc. (COIN:NAS) shares plunged 15% intraday Tuesday after a report the company is facing an SEC probe that the company may have offered unregistered securities for sale.
The company is already facing a probe about an insider trading scheme of an ex-Coinbase product manager.
With all the turmoil in the cryptocurrency market and issues Coinbase has had, their stock is down almost 77% year-to-date.
“I’m happy to say it again and again: we are confident that our rigorous diligence process — a process the SEC has already reviewed — keeps securities off our platform. We look forward to engaging with the SEC on the matter.”Coinbase’s chief legal officer Paul Grewal on Twitter.
The SEC is analyzing whether cryptocurrency tokens should be designated as commodities or securities.
“A digital token or crypto asset is a crypto asset security if it meets the definition of a security, which the Securities Act defines to include ‘investment contract,’ i.e., if it constitutes an investment of money, in a common enterprise, with a reasonable expectation of profit derived from the efforts of others.”SEC Wrote