The US Securities and Exchange Commission (SEC) has informed Coinbase Global Inc that it could face civil action for several of its products.
News of the potential legal action tumbled Coinbase shares to $68.18, down 12 percent from before.
According to a Wells notice, SEC authorities were set to launch enforcement actions against Coinbase. Despite this, it did not indicate the regulatory agency would file charges or initiate penalties.
Coinbase products such as Coinbase Earn, Coinbase Prime, and Coinbase Wallet, and other spot market products would be targeted, the SEC continued.
Brian Armstrong, Coinbase CEO, hit back at the Wells notice in a statement: “Going forward the legal process will provide an open and public forum before an unbiased body where we will be able to make clear for all to see that the SEC simply has not been fair, reasonable, or even demonstrated a seriousness of purpose when it comes to its engagement on digital assets.”
The SEC and the New York Attorney General have targeted several key cryptocurrency exchanges, including KuCoin, Coinbase, CoinEx, and many others. Many currency exchanges have faced lawsuits due to allegedly trading unregistered securities.
