Coinbase has stated it is being probed by the Securities and Exchange Commission (SEC) after the US regulator investigated the crypto platform over alleged unregistered token trading.
Now being probed over its customer programs, operations, and intended future products outlined in a Coinbase statement, the crypto exchange site has received subpoenas from the SEC over further investigation into Coinbase’s activities.
The Coinbase statement comes in its Q2 results report which revealed the firm’s revenue harshly dropped 61%, resulting in a $446m net loss for the company.
The statement reveals: “We have received investigative subpoenas from the SEC and similar subpoenas and demand letters from various state regulators for documents and information about certain of our customer programs, operations, and intended future products, including our stablecoin and yield-generating products.”
This isn’t the first time the SEC has inquired into Coinbase’s activities, after the US watchdog opened an investigation into the crypto platforms listing processes and suspicions of unregistered cryptocurrencies which they deemed to be securities.
The SEC proceeded to charge a former Coinbase manager and two unidentified individuals on alleged fraud charges relating to insider trading on the site.
Gary Gensler, SEC Chairman, has been keen to work alongside crypto asset providers to foster “investor protection” in a bid to make cryptocurrency trading safe and secure for investors in the US.
This has also resulted in the SEC opening more frequent investigations into digital asset platforms, such as Coinbase and Ripple, in order to prepare for an impending crypto bill which Congress has delayed until next year.
Gensler stated: “He stated: “More broadly, the public right now would benefit from investor protection around these various service providers, the exchanges, the lending platforms, and the broker-dealers.
“We at the SEC are working in each of those three fields; exchanges, lending, and the broker-dealers, and talking to industry participants about how to come into compliance, or modify some of that compliance.”
“We do have robust authorities from Congress also to use our exemptive authorities that we can tailor investor protection.”
