SEC Subpoenas Coinbase Over Staking and Yield Products

Coinbase is facing a probe by the U.S. SEC over its yield and staking products, according to its quarterly filing.

The United States Securities and Exchange Commission (SEC) is investigating yield and staking products of crypto exchange Coinbase, according to a quarterly report. The exchange has received investigative subpoenas from the SEC.

The probe will be another thorn in Coinbase’s side, which is rumored to be facing an investigation over the listing of certain assets, which the SEC allegedly believes are securities. It is also facing a new lawsuit, which alleges that it made “materially false and misleading statements.”

Regarding the investigative subpoenas, the Coinbase report reads,

“The Company has received investigative subpoenas and requests from the [U.S. Securities and Exchange Commission] for documents and information about certain customer programs, operations, and existing and intended future products, including the Company’s processes for listing assets, the classification of certain listed assets, its staking programs, and its stablecoin and yield-generating products.”

Staking and yield generating are two means that many platforms use to allow users to earn more from their holdings. They have both been very successful in terms of user engagement over the past few years, but this success is catching the attention of regulators.

The investigation by the SEC is a sign that the regulator is not taking any activity by exchanges lightly. The SEC has ramped up its investigation of all activities in the crypto market, and Coinbase appears front and center in its sights, being the major exchange that it is.

Coinbase has been having a somewhat tough time in recent weeks. The financials for the second quarter saw the company report a loss of over $1 billion. It pinned the blame on the crypto market crash.

However, it’s not all doom and gloom for the exchange. It announced a partnership with BlackRock, which allows the latter to offer crypto to its clients. The collaboration bridges BlackRock’s Aladdin software toolset with Coinbase Prime.

As for the SEC, it has become clear that the regulator is not going to take its foot off the pedal. A staff member from Senator Cynthia Lummis’ office said that the SEC was investigating every U.S. crypto exchange. There has been no official statement on this, but it would not come as a surprise, as the SEC has made it clear that it wants the crypto market to operate within the law.

The post SEC Subpoenas Coinbase Over Staking and Yield Products appeared first on BeInCrypto.


Earning Passive Income With Crypto

You may also like...

Leave a Reply

Your email address will not be published. Required fields are marked *