Coinbase's Token Listings Being Probed by US SEC for Securities Violations: Report

The SEC alleged last week that seven cryptocurrencies listed on Coinbase were securities.

Coinbase's Token Listings Being Probed by US SEC for Securities Violations: Report

Photo Credit: Coinbase

As of now, more than 150 cryptocurrencies are listed on Coinbase

  • Some of the tokens listed on Coinbase are being reviewed by the SEC
  • The SEC recently blamed 3 Coinbase employees for insider trading
  • Coinbase is confident in its 'rigorous diligence process'

The US Securities and Exchange Commission (SEC) has decided to investigate Coinbase Global to decide whether the platform allowed its clients to trade digital assets that should have been registered as securities. A spokesperson for the platform recently said that Coinbase does not list securities on its platform while the chief legal officer of Coinbase, Paul Grewal said, "We are confident that our rigorous diligence process — a process the SEC has already reviewed — keeps securities off our platform, and we look forward to engaging with the SEC on the matter."

According to a Bloomberg report on Monday, three people familiar with the matter said that the SEC's enforcement unit is looking into whether Coinbase wrongfully listed tokens that should have been registered as securities.

The sources also said that the SEC's inquiries began before it named nine crypto tokens as securities in an insider trading lawsuit against a former Coinbase employee and two of his associates.

According to Bloomberg's sources, who asked not to be named, the SEC began its inquiry after Coinbase began to rapidly expand the number of tokens listed on its platform.

The debate over which cryptocurrencies should be regulated as securities has been ongoing for years. As part of the insider trading case revealed last week, the SEC took a bold step by calling nine cryptocurrencies securities, seven of which are currently listed by Coinbase.

In a July 21 blog post, Coinbase was adamant that it does not list securities. "Coinbase has a rigorous process to analyse and review each digital asset before making it available on our exchange — a process that the SEC itself has reviewed," Coinbase Chief Legal Officer Paul Grewal wrote in the post. "But instead of having a dialogue with us about the seven assets on our platform, the SEC jumped directly to litigation."

Why is Oppo making strange choices with its flagship Reno series? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.

For the latest tech news and reviews, follow Gadgets 360 on Twitter, Facebook, and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel.

Further reading: Cryptocurrency, Coinbase, SEC
Google Pixel 6a’s Camouflage Tool to Make Its Way to Pixel 6, Pixel 6 Pro: Report
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News


Follow Us


© Copyright Red Pixels Ventures Limited 2023. All rights reserved.