Coinbase, Exchanges

Does the SEC Regulate Coinbase?

The SEC’s involvement with Coinbase has been a controversial topic since the popular digital currency exchange first launched in 2012. In March of 2018, the SEC released a statement clarifying its stance on digital currencies, stating that Bitcoin and Ethereum are not securities, but that some digital tokens may be classified as such.

This statement caused Coinbase’s share value to drop by nearly 9% in a single day.

The SEC has since been quiet on the subject of Coinbase, leading many to wonder if the regulatory agency is planning to take any action against the popular exchange. In June of 2018, it was revealed that the SEC had begun investigating whether or not Coinbase had violated securities lAWS in its handling of the launch of Bitcoin Cash on its platform.

NOTE: WARNING: Coinbase is not currently regulated by the Securities and Exchange Commission (SEC). Although Coinbase is registered with FinCEN as a Money Services Business, it does not fall under the jurisdiction of the SEC. As such, investors should be aware that investing in digital assets through Coinbase carries additional risks due to lack of regulatory oversight. It is highly recommended that investors consult a financial advisor or legal counsel prior to investing in any digital asset.

However, no official action has been taken by the SEC against Coinbase, and it remains to be seen if they will take any further action in the future.

At this time, it does not appear that the SEC is planning to regulate Coinbase directly. However, given the agency’s recent statements and actions regarding digital currencies, it is possible that they may take action against the exchange if they believe it has violated securities lAWS.

For now, Coinbase remains one of the most popular digital currency exchanges available, and users can continue to buy and sell cryptocurrencies on the platform without fear of regulatory interference.

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