Coinbase Gets SEC Notice Signaling Intent to Sue Over Crypto Offerings
- SEC identified potential violations of securities law
- Coinbase shares retreat in after-hours New York trading
WATCH: Coinbase Gets SEC Notice on Intent to Sue Over Offerings
Source: Bloomberg
Coinbase Global Inc. said it received a notice from the SEC formally declaring the securities regulator’s plans to bring an enforcement action against the largest US crypto exchange, the latest development in a long-running dispute between the watchdog and the digital-asset company. The stock slumped as much as 14% in premarket trading on Thursday.
Securities and Exchange Commission Chair Gary Gensler has repeatedly said many of the tokens and products offered by crypto companies are securities and that the trading platforms need to register with his agency. Those warnings ramped up after the collapse of several prominent companies last year, including Sam Bankman-Fried’s FTX, left investors facing billions of dollars of losses. In a separate action Wednesday, the SEC sued crypto mogul Justin Sun for allegedly violating securities rules.