The US Securities and Exchange Commission is probing crypto giant Coinbase for digital assets traded by users which might have had to be registered as securities.
SEC has increased scrutiny against Coinbase since the platform expanded the number of tokens in its offering, according to a «Bloomberg» report citing unnamed sources.
The regulator is probing into whether or not the crypto platform – the largest in the US with over 150 tokens available – allowed users to trade digital assets that should have been registered as securities.
«Coinbase Does Not List Securities»
Separately, a former Coinbase manager and two other individuals are currently being probed over an alleged insider trading scheme.
According to Coinbase’s chief legal officer Paul Grewal, the SEC decided to file securities fraud charges against the ex-Coinbase employee, in contrast to the Justice Department.
«The DOJ reviewed the same facts and chose not to file securities fraud charges against those involved. As CFTC Commissioner Caroline Pham stated, this is «a striking example of ‘regulation by enforcement’» by the SEC,» Grewal said in the blog post titled «Coinbase does not list securities. End of story».
