SEC filed a notice to the crypto exchange Coinbase to bring an enforcement action against the exchange.
- The SEC finds breaches of the securities laws against Coinbase.
- Coinbase share falls over 8%.
According to a regulatory filing on Wednesday, the securities watchdog intends to bring an enforcement action against one of the largest cryptocurrency exchanges in the United States. This is the most recent development in a protracted dispute between the watchdog and the digital asset.
Coinbase Shares Dropped
Coinbase’s exchange, Coinbase Earn, Coinbase Wallet, and its staking service are all affected by the so-called Wells notice. Following the filling, Shares of Coinbase dropped by 8% today after dropping by the same amount on Wednesday, despite more than doubling since the start of January. The stock is still down 56% from a year ago. On Wednesday, it finished at $77 per share.
Moreover, not every potential problem mentioned in the notice has to be addressed in a final action. After the notice was issued, Coinbase did not respond to a request for comment, but it said its services continued to operate as usual.