Nasdaq-listed Coinbase Global is under investigation by the U.S. Securities and Exchange Commission (SEC) for its token listing processes and its staking programs and yield-generating products, according to the company’s most recent quarterly report.

See related article: Former Coinbase manager arrested on insider trading charges

Fast facts

  • “[Coinbase] has received investigative subpoenas and requests from the SEC for documents and information about certain customer programs, operations, and existing and intended future products,” Coinbase said in its 10-Q form.
  • Coinbase added it does not believe existing legal investigations will have an adverse material impact on the company’s finances, operations or cash flows.
  • The U.S. Department of Justice recently arrested former Coinbase product manager Ishan Wahi and his brother, Nikhil Wahi, on allegations of wire fraud.
  • The SEC also separately charged the pair with securities fraud in a civil case, which Coinbase called a “distraction” and argued assets listed on their exchange are not securities.
  • U.S. regulators are currently grappling with how best to define digital assets, with two separate bills designed to address this issue proposed in recent months.
  • Coinbase also recently partnered with investment management firm BlackRock Inc. to provide institutional clients with access to crypto trading and custody services. 

See related article: BlackRock, Coinbase partner to extend crypto trading to institutional investors