U.S. SEC Probes Crypto Exchange

Wells Notice from the U.S. Securities and Exchange Commission has been served to Coinbase Global Inc on March 22. The notice suggests enforcement  action against the cryptocurrency exchange as the US watchdog continues to push regulation through enforcement action.

Civil action warning was given to Coinbase which involves a request for an injection, monetary penalties or a cease and desist order.

Data already shows the Coinbase share price (NASDAQ: COIN) has dropped by 8.16% during trading hours with a closing price of $77.14 losing more than 57% of its value over the past year.

Scrutiny against cryptocurrency firms has been increased by the SEC as the regulator utilizes the new tool in trend “Wells Notice whilst a clear stance against the digital asset industry has been already been defined by Gary Gensler.

A blog by Coinbase illustrated its disappointment regarding this development as it stated its prepared and the company is confident with the legality of its services and assets.

Coinbase added if need, it welcomes a legal process in order to provide clarity over the matter as it alleged the US SEC has not been fair or reasonable when it comes to engagement around digital assets.