Crypto exchange Coinbase Global Inc COIN said it is being investigated by the U.S. Securities and Exchange Commission (SEC) over a number of its products.
What Happened: The company in its most recent quarterly report stated that it received investigative subpoenas from the SEC for documents and information about certain customer programs, operations and existing and future products.
These include Coinbase’s processes for listing assets, the classification of certain listed assets, its staking programs and its stablecoin and yield-generating products.
“The Company believes the ultimate resolution of existing legal and regulatory investigation matters will not have a material adverse effect on the financial condition, results of operations, or cash flows of the Company,” Coinbase said in the filing.
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The crypto exchange noted that the resolution of these matters may have material adverse effects on Coinbase’s results of operations for a particular period.
Apart from the SEC, Coinbase said it was issued an investigative subpoena from the California Department of Fair Employment and Housing in January 2021, seeking information relating “certain business practices and policies.” This matter is still ongoing, the company said.
The exchange’s disclosures in the filings comes after sources close to the matter revealed that the exchange was being investigated over its token listings last month.
Coinbase published a blog shortly after these reports, stating that it “does not list securities. Period.”
Price Action: Coinbase shares were trading 0.12% lower after hours.
Meanwhile, the crypto market saw a 6.05% increase over the last 24 hours to $1.15 trillion. At press time, Bitcoin BTC/USD was trading at $24,146, up 5% in 24 hours and Ethereum ETH/USD was trading at $1,871, up 11% over the same period.