SEC's Warning to Coinbase Sends Stock Plummeting and Raises Possibility of Legal Action
TL;DR Summary
Coinbase received a Wells notice from the SEC, which has made a "preliminary determination" to recommend an enforcement action against the company for alleged violations of federal securities law. Coinbase CEO Brian Armstrong is confident in the company's compliance with the law and welcomes the opportunity to go before a court. The SEC's action against Tron founder Justin Sun for possible securities violations and its previous action against Kraken for staking-as-a-service indicate that regulatory clarity on staking and securities law may be forthcoming. Shares of Coinbase dropped 13.8% in after-hours trading.
- Coinbase stock drops after SEC Wells notice, a possible prelude to ‘enforcement action’ TechCrunch
- Coinbase warned by SEC of potential securities charges CNBC
- Coinbase Gets SEC Notice on Intent to Sue Over Offerings Bloomberg Television
- Justices Appear Divided in Crypto Arbitration Dispute | National Law Journal Law.com
- U.S. SEC threatens to sue Coinbase over some crypto products Reuters
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