The high-profile cryptocurrency exchange company, Coinbase has entangled itself in the SEC’s web for the past year. The United States’ largest exchange platform has been investigated and summoned by the federal agency repeatedly.
The exchange platform seems off the SEC radar. However, the United States SEC is set to investigate the platform again.
Coinbase Receive Investigative Subpoena From SEC
Earlier, the largest exchange company in the US, Coinbase, disclosed that it received a summoning from the cryptocurrency regulatory agency. The announcement was made known during the quarterly platform filling via an official release from the company’s management.
According to the release from the company, the SEC served an investigative letter demanding information on some operations and processes on the platform. The summon letter stated that the company should provide details regarding its cryptocurrency listing process, filling, and business operations.
The Cryptocurrency regulatory agency also asked for details about some special users’ programs. The regulatory body demanded maximum cooperation during and after the investigation.
An excerpt from the release, “We received an investigative letter from the U.S. SEC. The body demands details and information regarding the company’s business operation, programs, listed products, and certain customer programs. All the necessary filing, public companies must file to the commission quarterly, staking programs, stablecoins were all requested by the commission”.
The Subpoena Will Have No Adverse Effect – Coinbase
After making the subpoena revelation, the Coinbase management also assured in the filling that the announcement would not have an adverse resolution/ effect on the company’s image. The SEC has been given all the requested details. They will investigate the company’s crypto listing process, operations, yield generating, and upcoming products and assets.
There are rumors that the commission may be on the search for unregistered tokens and assets on the exchange platform. The release concluded that operational activities and profitability would not be negatively impact pending the investigation result.
The subpoena is coming weeks after the company slammed a lawsuit against the commission. On the 22nd of July, the SEC declared nine tokens listed on the platform as securities. The commission filed a 62-page petition against the company. The petition stated why the nine tokens were securities and a case of leaking trading signals from the company’s former top manager.
The accusation did not go down with the company management, who immediately refuted the claims and challenged the agency in court. Following the legal action, the platform accused the federal commission of lack of clarity, misuse of power, and enforcement of security law in the crypto space.