Coinbase receives a warning from the SEC

Coinbase SEC

Coinbase has announced that it has received a warning from the SEC, this comes in the form of a “Wells notice” and it is related to an undefined portion of the company’s listed digital assets.

The company has said that this is not a lawsuit but instead it could possibly lead to one in the future, the company has revealed that it is related to their staking service Coinbase Earn.

Today, we are disappointed to share that the SEC gave us a “Wells notice” regarding an unspecified portion of our listed digital assets, our staking service Coinbase Earn, Coinbase Prime, and Coinbase Wallet after a cursory investigation. A Wells notice is the way that SEC staff tells a company that they are recommending that the SEC take enforcement action for possible violations of securities laws. It is not a formal charge or lawsuit, but it can lead to one. Rest assured, Coinbase products and services continue to operate as usual – today’s news does not require any changes to our current products or services. 

Today’s Wells notice does not provide a lot of information for us to respond to. The SEC staff told us they have identified potential violations of securities law, but little more. We asked the SEC specifically to identify which assets on our platforms they believe may be securities, and they declined to do so. Today’s Wells notice also comes after Coinbase provided multiple proposals to the SEC about registration over the course of months, all of which the SEC ultimately refused to respond to. 

You can find out more details about Coinbase and the warning notice that Coinbase has received from the SEC at the link below, it is not clear as yet on whether this will result in any action towards the company from the SEC.

Source Coinbase

Image Credit: Jonathan Borba

Filed Under: Technology News

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