under SEC investigation for false crypto listings as securities



Coinbase crypto exchange is currently under investigation held by the U.S. Securities and Exchange Commission (SEC) to probe whether it falsely listed cryptocurrencies as unregistered securities, Bloomberg reports.

On Monday, the U.S authorities investigated seven listed cryptocurrencies on Coinbase that might be working as unregistered securities for personal gains.

Last week, during an investigation of Coinbase’s ex-product manager who was charged for an insider trading scheme, the SEC claimed nine of the crypto assets on Coinbase were securities. Coinbase immediately denied the allegation claiming that it has never listed any securities on its platform.

However, this week, SEC seems to have found evidence of the unregistered securities based on the crypto token listings on the exchange but Coinbase disagrees with it.

According to crypto exchange, the U.S regulator hasn’t clearly defined which cryptocurrencies are considered securities because the existing laws only meet the traditional market guidelines. The lack of crypto regulations makes the case even more complex.

Coinbase’s CEO explains that Coinbase aims to list every legal crypto asset on its platform.

Additionally, Coinbase Chief Legal Officer Paul Grewal said,  “We are confident that our rigorous diligence process—a process the SEC has already reviewed—keeps securities off our platform, and we look forward to engaging with the SEC on the matter.”

Although SEC refuses to answer any queries asked by NFTStudio24, the U.S regulator seems adamant about investigating the crypto tokens on Coinbase as unregistered securities.