SEC's Possible Legal Action Sends Coinbase Stock Plummeting

Coinbase Global received a Wells notice from the Securities and Exchange Commission (SEC) stating that SEC staff had made a "preliminary determination" to recommend an enforcement action against the largest U.S. crypto exchange for violations of federal securities laws. Coinbase stock was down 12% in premarket trading on Thursday morning after falling just as much through Wednesday. Coinbase said in its filing that it "believes" any action relates to specific crypto assets listed on the platform will include aspects of the exchange's spot market, staking service, Prime and wallet services.