Coinbase Global Inc. said it received a notice from the SEC formally declaring the securities regulator’s plans to bring an enforcement action against the largest US crypto exchange, the latest development in a long-running dispute between the watchdog and the digital-asset company.
Securities and Exchange Commission Chair Gary Gensler has repeatedly said many of the tokens and products offered by crypto companies are securities and that the trading platforms need to register with his agency. Those warnings ramped up after the collapse of several prominent companies last year, including Sam Bankman-Fried’s FTX, left investors facing billions of dollars of losses.
In a filing Wednesday, Coinbase said the so-called Wells notice regards aspects of its exchange as well as the staking service Coinbase Earn and Coinbase Wallet.
Source: Coinbase (COIN) Gets SEC Wells Notice Over Crypto Offerings – Bloomberg