According to the company’s most recent quarterly report, Coinbase Global is being looked into by the US Securities and Exchange Commission (SEC) for its token listing procedures, staking programs, and yield-generating products.
Coinbase stated: “[Coinbase] has received investigative subpoenas and requests from the SEC for documents and information about certain customer programs, operations, and existing and intended future products.”
Coinbase further stated that it does not anticipate that ongoing legal investigations will materially negatively affect the company’s finances, operations, or cash flows.
Ishan Wahi, a former Coinbase product manager, and his brother Nikhil Wahi were recently detained by the US Department of Justice on suspicion of wire fraud.
Coinbase referred to the SEC’s civil charges against the pair as a “distraction” and contended that the assets offered on their exchange are not securities. The SEC has separately accused the two of securities fraud.
The proper way to classify digital assets is now under discussion by U.S. regulators, with two separate measures being presented to do so.