Coinbase drops after US SEC threatens to sue over some cryptocurrency products | – #Coinbase #drops #SEC #threatens #sue #cryptocurrency #products
March 23 (Reuters) – Shares of Coinbase Global Inc (COIN.O). USA It fell 15% in midday trading on Thursday after the Securities and Exchange Commission threatened to sue the cryptocurrency exchange over certain products.
Global regulators are keeping a close eye on the crypto world after a series of high-profile crashes last year wiped more than a trillion dollars off the market capitalization of the digital asset industry.
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BofA Global Research analysts, “This news USAIt shows the regulatory headwinds and uncertainty facing the cryptocurrency industry under the current administration,” he said.
Analysts at brokerage KBW said in a note that the SEC serving Coinbase with the Wells notice is pending, and the move will create an extreme rally in the cryptocurrency exchange’s shares.
Last year, the company’s shares lost 86% of their value, underperforming the sector.
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The company said the SEC’s potential enforcement action is likely related to aspects of Coinbase’s spot market, as well as its staking service Earn, Prime and Wallet products.
Staking is a process where cryptocurrency holders volunteer to participate in validating transactions on the blockchain. These products are often a hit with customers offer does.
“We have asked the SEC to specifically define which assets on our platforms can be securities and they have refused to do so,” Coinbase said.
Meanwhile, TD Cowen analysts say the only way to clarify how the law applies to crypto solutions court said that they had quarrels.
Last month, Coinbase posted a fourth-quarter loss as trading volume on the cryptocurrency exchange came under pressure from an industry-wide decline. of the workforce as part of a restructuring plan earlier this year 20%, or about 950 jobs.
Reporting by Manya Saini in Bengaluru; Edited by Shinjini Ganguli and Devika Syamnath
Our standards: Thomson Reuters Trust Principles.
2023-03-24 02:41:34
Source – reuters
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