wp-plugin-hostgator domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home4/scienrds/scienceandnerds/wp-includes/functions.php on line 6114ol-scrapes domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home4/scienrds/scienceandnerds/wp-includes/functions.php on line 6114Source: https:\/\/www.theverge.com\/2022\/7\/26\/23279013\/coinbase-cryptocurrency-exchange-sec-investigation-securities<\/a> Cryptocurrency exchange Coinbase is reportedly facing an investigation from the US Securities and Exchange Commission (SEC) over whether it allowed users to trade unregistered securities, according to a report from Bloomberg<\/em><\/a>. The SEC\u2019s probe hasn\u2019t yet been made public.<\/p>\n Sources close to the situation told Bloomberg<\/em> that the SEC started taking a closer look at Coinbase\u2019s practices after the exchange added over 100 additional tokens<\/a> to its platform, including Dogecoin, the joke cryptocurrency based on the Shiba Inu meme. These types of coins typically do well after they\u2019re first listed, but they\u2019re very volatile, and their value typically evaporates over time<\/a>.<\/p>\n This investigation is separate from the SEC\u2019s case against former Coinbase product manager<\/a> Ishan Wahi, his brother, Nikhil Wahi, and his friend, Sameer Ramani. The agency charged the three with insider trading<\/a> earlier this month, alleging Ishan \u201crepeatedly tipped the timing and content of upcoming listing announcements\u201d to his brother and friend, which resulted in gains of over $1.1 million. It also claims that Nikhil Wahi and Ramani purchased \u201cat least 25 crypto assets, at least nine of which were securities.\u201d<\/p>\n I\u2019m happy to say it again and again: we are confident that our rigorous diligence process\u2014a process the SEC has already reviewed\u2014keeps securities off our platform, and we look forward to engaging with the SEC on the matter. A refresher: https:\/\/t.co\/SaacvrZEiU<\/a><\/p>\n \u2014 paulgrewal.eth (@iampaulgrewal) July 26, 2022<\/a>\n<\/p><\/blockquote>\n<\/div>\n Paul Grewal, the chief legal officer at Coinbase, disputes the SEC\u2019s claims about Coinbase listing securities in a post on Medium<\/a>, citing that the Department of Justice didn\u2019t file<\/a> security fraud charges against Coinbase when indicting Nikhil Wahi, Ishan Wahi, and Sameer Ramani for insider trading. Grewal states that \u201cnone\u201d of the assets referred to in the SEC\u2019s charges are considered securities.<\/p>\n \u201cCoinbase has a rigorous process to analyze and review each digital asset before making it available on our exchange \u2014 a process that the SEC itself has reviewed,\u201d Grewal writes. \u201cThis process includes an analysis of whether the asset could be considered to be a security<\/a>, and also considers regulatory compliance and information security<\/a> aspects of the asset.\u201d<\/p>\n In general, a security is a tradable financial asset<\/a> that holds monetary value and must be registered with the SEC. The tricky part about crypto, however, is that not all<\/em> digital assets are considered securities. In 2018, former SEC chairman Jay Clayton told CNBC<\/a> that cryptocurrencies that replace \u201csovereign currencies,\u201d like Bitcoin and Ether, aren\u2019t securities \u2014 but digital assets and tokens used in initial coin offerings (ICOs) are.<\/p>\n If this sounds confusing, that\u2019s because it is. Last week, Coinbase petitioned the SEC (pdf<\/a>) to clarify what exactly it considers a security, claiming the US lacks \u201ca clear and workable regulatory regime.\u201d Coinbase argues that the SEC takes an \u201cenforcement-first\u201d approach, rather than establishing a set of rules for companies to abide by. <\/p>\n \u201cWe are confident that our rigorous diligence process\u2014a process the SEC has already reviewed\u2014keeps securities off our platform, and we look forward to engaging with the SEC on the matter,\u201d Grewal writes on Twitter<\/a>.<\/p>\n
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