The US Securities and Exchange Commission (SEC) is investigating Coinbase, again. The digital currency exchange is now facing an investigation for its alleged sale of unregistered securities. The SEC is reportedly investigating Coinbase Global Inc. (NASDAQ: CURRENCY) on allowing US residents to trade digital assets that the commission considers to be securities.
News of the investigation comes after the arrest last week of the company’s former employee, who was charged with insider trading. The SEC claimed that at least nine of the traded tokens are securities. All of these nine tokens are listed on Coinbase.
Chief Legal Officer Paul Grewal tweeted: “We are confident that our rigorous due diligence process, a process the SEC has already reviewed, keeps securities off our platform, and we look forward to working with the SEC on this.”
I’m happy to say it over and over again: We are confident that our rigorous due diligence process, a process the SEC has already reviewed, keeps securities off our platform, and we look forward to working with the SEC on this. A review: https://t.co/SaacvrZEiU
— paulgrewal.eth (@iampaulgrewal) July 26, 2022
In the past, Coinbase has expressed how the SEC has been overseeing the digital asset space and has once again asked the commission to clarify its rules for trading. A petition was filed in court on July 27 urging the regulator to create guidelines to safeguard the industry amid a market downturn and bankruptcies.
The petition says: “The United States currently does not have a functioning market in digital asset securities due to the lack of a clear and workable regulatory regime.”
Like other major ‘crypto’ players, Coinbase shares fell. It fell 21% this week.
Meanwhile, Voyager rejects FTX’s offer to buy the bankrupt digital currency platform, saying, “It’s a low bid masquerading as a white knight bailout.”
Last week, digital currency exchange FTX proposed a deal with West Realm Shires and Alameda Ventures to provide immediate liquidity to Voyager clients. This includes the option to sign up with FTX and continue to seek additional recoveries from Three Arrows Capital (3AC).
Voyager’s lawyers said the proposal would disrupt the bankruptcy process and “is nothing more than a liquidation of cryptocurrencies on a basis that benefits Alameda FTX.” Alameda is the lender and majority shareholder of Voyager.
Earlier this month, the digital currency exchange filed for Chapter 11 bankruptcy protection in New York, citing the decline of its 3AC borrower and market volatility.
In other news, NFT gamers and enthusiasts were disappointed after Minecraft banned blockchain integrations into the game and its servers to create NFTs. The popular game cited fraudulent and speculative pricing, rug runs, scarcity and exclusion.
Although Minecraft said no to NFTs for now, a famous cat greets you.
Sanrio and Recur team up for the Hello Kitty and Friends World NFTs bring the friendship and community of the world’s favorite characters to the NFT space. Hello Kitty and five of her friends will act as tour guides in eight iconic cities for fans through the 10,000 NFT up for sale. Fans can collect Hello Kitty characters and earn new digital collectibles in the metaverse.
And before you go, be sure to check out the upcoming Enterprise Utility Blockchain Summit India taking place next week in Bangalore. Sponsored by BSV Blockchain Association, CoinGeek, Gate2Chain, Sunicon, and Minta, the summit will focus on India’s blockchain and stack scalability, IPv6, and IoT, among other topics. you can grab your tickets here.
See special coverage of this event coming soon on the Coingeek YouTube Channel.
Watch the latest episode of More Than Money with guest Antonino Sardegno:
New to Bitcoin? Take a look at CoinGeek bitcoin for beginners section, the definitive resource guide for more information on Bitcoin, as originally conceived by Satoshi Nakamoto, and blockchain.