SEC staff have made a preliminary decision to recommend the agency to file an enforcement action against Coinbase (COIN) is accused of violating securities laws, including those related to newly issued securities and actively traded securities. However, the exchange said the regulator did not specify potential fees.
Coinbase (COIN) believes that these potential enforcement actions will involve the exchange and staking service Coinbase Earn, Coinbase Prime, and Coinbase Wallet. Potential civil lawsuits could seek relief by order, dismissal, and civil penalties.
“We believe in the legitimacy of our assets and services, and if needed, we welcome a regulatory process to provide the clarity we’ve advocated and to demonstrate that the SEC is straightforward. is not fair or reasonable when it comes to participating in digital assets,” the exchange said in a blog parcel. “Rest assured, Coinbase products and services continue to operate as normal.”
The exchange said the announcement follows multiple proposals it made to the SEC for registration, “all of which the SEC ultimately declined to respond to.”
“We have asked the SEC to specifically identify which assets on our platform they believe may be securities, and they have refused to do so,” the company said.
Shares of Coinbase (COIN) finished 8.2% lower on Wednesday.
Read author SA Josh Arnold’s stock analysis.