Shares for the crypto exchange platform Coinbase are down on Wall Street despite the company’s explanation of the Securities and Exchange Commission’s (SEC) alleged violations of federal securities laws related to the company’s staking service Coinbase Earn, Coinbase Prime, and Coinbase Wallet.
, the digital assets violated federal securities laws, including the Securities Exchange Act of 1934 and the Securities Act of 1933.
In response, Coinbase said, "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.""We are prepared for this disappointing development," Coinbase added.
Global regulators are keeping a close watch on the crypto world after a string of high-profile collapses wiped out more than a trillion dollars from the digital assets industry's market capitalization last year. In the aftermath of the turmoil, the SEC has raised scrutiny over certain crypto services and how the companies hold customer deposits.
"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," Coinbase said.
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