Whenever there is even a faint idea that someone is toying with the securities without first declaring it to the SEC, the regulatory commission gets all run down. Coinbase has recently been accused of listing securities on the exchange and is now awaiting a showdown with the SEC.
There is much of a history there between the SEC and Coinbase as in the past, there was news of an ex-employer of Coinbase engaging in Insider trading, and now this.
SEC has strengthened its watch on Coinbase since the exchange has also increased the number of tokens that are listed there for active trading, 150 different tokens to be precise. Since Coinbase is not registered with the SEC as there was no preliminary requirement to do so in the past on accounts that the exchange never succumbed to listed securities, but now that it has, Coinbase would have to affiliate itself with the SEC.
Paul Grewal, who is the legal office for Coinbase, has already confirmed that they don’t have any skeletons in the closet for which they should be immensely worried. He also did put down a statement saying that this kind of due diligence has been commenced in the past with the SEC, and they found nothing, and this time is also going to be no different.
Paul further attested that Coinbase has a strong policy against listing securities and has done everything in the past to keep these away from the platform, as it is doing at the moment.
SEC is all bent out of shape on tightening its rope around Coinbase as the previous interactions have not been smooth. There was the issue of inside trading; a former employee of Coinbase tipped his brother off to buy certain assets as soon as these were listed on the exchange.
They also have had a bout about whether some tokens are securities or not, and now this. SEC is sure that about nine of the total 150 different listings that Coinbase has on its exchange are securities; it would only be made clear once the case finds some momentum.