The United States Securities and Exchange Commission (SEC) has commenced a probe over tokens listed as securities by Coinbase.
According to a report by ‘Bloomberg’ the SEC is investigating whether Coinbase let users trade assets that should have been registered as securities.
Last week, the SEC in a complaint said that Coinbase listed nine crypto asset securities. In its complaint, SEC said that crypto tokens AMP, RLY, DDX, XYO, RGT, LCX, POWR, DFX, and KROM are unregistered securities.
Should the SEC be able to deem the tokens as securities, Coinbase would be required to register with the regulatory bodies.
Coinbase, in a reaction made through its Chief Legal Officer, Paul Grewal said that “Coinbase does not list securities.”
“We are confident that our rigorous diligence process — a process the SEC has already reviewed — keeps securities off our platform, and we look forward to engaging with the SEC on the matter,” Grewal added.
Earlier this week, the US SEC charged a former employee of Coinbase alongside two others with alleged wire fraud, for engaging in insider trading.
This incident is marked as the first insider trading case involving cryptocurrency.