Published
1 year ago on
August 11, 2022
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Coinbase is facing yet more scrutiny from the U.S. Securities and Exchange Commission (SEC), this time over its token listing process, its staking process, and its yield-generating products.
SEC Probes Into Coinbase’s Staking Products
In its recent quarterly report disclosing a loss of $1 billion, Coinbase has been served with more regulatory scrutiny. The exchange has revealed that the SEC is probing into its staking product which allows investors to earn yield by locking up certain cryptocurrencies. According to the quarterly report,
The Company has received investigative subpoenas and requests from the [U.S. Securities and Exchange Commission] for documents and information about certain customer programs, operations, and existing and intended future products, including the Company’s processes for listing assets, the classification of certain listed assets, its staking programs, and its stablecoin and yield-generating products.
Coinbase has been under severe heat from the SEC after the regulatory body announced that it was investigating the exchange for listing nine tokens it believes to be securities and would fall under its purview. This has been a point of contention between the exchange and the regulator with Coinbase consistently stating that it does not host securities of any sort. Legal Officer for Coinbase Paul Grewal has also officially denied these allegations. Last month, the securities agency also charged a former Coinbase product manager and two associates for alleged insider trading. The SEC along with the Department of Justice has filed civil and criminal charges against former employee Ishan Wahi, his brother Nikhil Wahi and friend Sameer Ramani for sharing confidential information about pending announcements of cryptocurrencies.
Coinbase To Welcome More Regulations
Amid the heat of the increased regulatory scrutiny, CEO of Coinbase Brian Armstrong has welcomed more regulation saying,
The more regulation there is for crypto, the better it is for Coinbase.
Armstrong has said that the exchange is willing to meet with regulators worldwide as does not regard cryptocurrency regulations as bad.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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