Recently, it was reported that the SEC took a closer look at Coinbase. The Commission accuses the company of listing the securities.
Coinbase in breach?
According to media reports, the US Securities and Exchange Commission (SEC) verifies whether Coinbase trades on its stock exchange digital assets that had to be registered as securities first. Both in the United States and in many other countries of the world, the sale of assets classified as securities is possible after prior registration with the SEC.
Meanwhile, it is unlikely that any of the digital assets traded on Coinbase will be subject to such registration. Therefore, the SEC has launched a procedure to verify that cryptocurrencies and tokens traded in companies can be considered a type of security and, therefore, are required to be registered.
XRP is the first cryptocurrency withdrawn by Coinbase
First, the SEC drew attention to the XRP cryptocurrency, formerly known as Ripple. In her case, the Commission charged that it had been placed on the market without prior registration required by law. Although Coinbase removed it from its database, the SEC also took an interest in other digital currencies. The more so as the company has recently expanded its offer of tokens and cryptocurrencies, focusing the attention of regulatory authorities. Coinbase itself, referring to the whole matter, posted an eloquent entry on social media, in which she expressed the belief that the proceedings conducted by the Commission will separate the securities from the platform's activities.
The US is tightening control over the cryptocurrency industry
The SEC's inspections are due in part to US policy itself, with an increasing emphasis on oversight of the cryptocurrency industry. Therefore, the exchange platforms themselves are also expected to take appropriate measures to protect retail investors.
Coinbase offers many cryptocurrencies and tokens, but there are many indications that some of them will positively pass the inspections carried out. It cannot be ruled out that the process of selecting assets by the company was carried out so scrupulously that among cryptocurrency traded, there are no eligible securities.
So far, the SEC has not yet made any specific charges, and the case is still under investigation. Therefore, Coinbase can operate as usual.