Coinbase Looked Into by SEC Over Allegedly Listing Securities
The U.S Securities and Exchange Commission (SEC) is investigating Coinbase, the publicly-traded crypto exchange that they oversee, due to suspicion that the exchange allowed US persons to trade unregistered securities.
The regulator is looking into some of the cryptocurrencies listed on the exchange, according to Bloomberg. The SEC claimed last week that seven cryptocurrencies listed on Coinbase were securities in an unrelated case against a former product manager at the exchange.
Chair of the SEC, Gary Gensler, has said previously that he believes Coinbase should register as a national securities exchange, because of some of the cryptocurrencies it lists.
According to two anonymous sources, the SEC reviewed Coinbase’s practices more closely because of their increasing number of token listings. The exchange has been at the forefront of criticizing the Securities and Exchange Commission for not being clear on how they would define which cryptocurrencies could be considered securities.
Faryar Shirzad, the Chief Policy Officer at Coinbase, said that current securities laws might not be a fit for cryptocurrencies.
This is not the first time, the SEC is after the exchange. In September Coinbase received a warning from the regulator over its ‘Lend’ program (SEC) issued a warning to the exchange, after which the company put a halt to its plans.
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Source: igaming
