The increasing regulatory scrutiny over America’s largest crypto exchange, Coinbase (NASDAQ:COIN), has seen the Security and Exchange Commission (SEC) open another probe into the exchange’s crypto yield and staking products.
SEC Investigates Coinbase’s Staking Products
In its recent quarterly report disclosing a $1 billion loss, the crypto exchange revealed that its staking product, which allows investors to earn yield by locking up certain cryptos, is being probed by the SEC.
Coinbase disclosed in its 10-Q form that the SEC was probing the company’s “processes for listing assets, the classification of certain listed assets, its staking programs, and its stablecoin and yield-generating products.”
In July, the securities agency charged a former Coinbase product manager in an insider trading case and stated that nine crypto tokens listed on Coinbase are securities.
Coinbase Will Benefit from More Regulations
In the heat of regulatory scrutiny, Coinbase CEO Brian Armstrong has said that “the more regulation there is for crypto, the better it is for Coinbase.”
Armstrong explained that his company was willing to meet with regulators worldwide and doesn’t see crypto regulations as bad.
Coinbase has dismissed claims that it listed the exchange listed any securities. Armstrong has said that he isn’t sure if the SEC’s inquiry will become a formal investigation.
On the Flipside
- The “uncertainty” created by the barrage of regulatory scrutiny over Coinbase has led Cathie Wood’s Ark Invest to dump over 1.4 million COIN shares.
Why You Should Care
Armstrong, like most experts, believes that regulatory clarity over crypto will be the best way to help the industry move forward.
Read the full details of Coinbase’s Q2 report below:
Coinbase Posts $1 Billion Dollar Loss in Q2, Trading Volumes Take Major Hit
Get more info on the Coinbase insider trader in:
Former Coinbase Manager Ishan Wahi Under Arrest, Charged with Insider Trading
The shares dump by Ark Invest is covered in:
Cathie Wood of Ark Invest Dumps Coinbase Shares Amid SEC Probe