Coinbase gets Wells notice from U.S. SEC over Earn product, wallet
2023.03.22 18:35
© Reuters. FILE PHOTO: People watch as the logo for Coinbase Global Inc, the biggest U.S. cryptocurrency exchange, is displayed on the Nasdaq MarketSite jumbotron at Times Square in New York, U.S., April 14, 2021. REUTERS/Shannon Stapleton/File Photo
(Reuters) -Coinbase Global Inc said on Wednesday it had received a notice from the U.S. Securities and Exchange Commission warning that the cryptocurrency exchange could face a civil action over some of its products.
Shares of Coinbase (NASDAQ:) were down nearly 12% at $68.18 in extended trading.
A Wells notice shows that SEC staff intend to recommend enforcement action against the company, but it does not always result in charges or signal that the recipient has violated any law.
The potential enforcement actions would be tied to aspects of the company’s spot market, its Coinbase Earn, Coinbase Prime and Coinbase Wallet products, it said.
Coinbase also said its services continued to operate as usual after the notice was issued.
