Coinbase (COIN) Price Tumbles After SEC Flags Potential Legal Probe

Crypto News: Coinbase Global Inc on March 22, 2023, got served with a Wells Notice from the U.S. Securities and Exchange Commission (SEC). This suggests that the regulatory body is considering enforcement action against the crypto exchange. US SEC’s this action has led Coinbase shares (NASDAQ: COIN) price to decline in the after-hours trading.

Coinbase (COIN) Drops By 15%

According to the data, Coinbase share price (NASDAQ: COIN) dropped by 8.16% during the regular trading session and closed at the price of $77.14. However, COIN price have declined by 15.8% in the after hours trading to stand at $64.95. However, Coinbase stock has lost more than 57% of its value over the past year.

As the US watchdog continues to push regulation through enforcement actions, Coinbase has been warned of potential civil actions that involve a request for an injection, monetary penalties, or even a cease and desist order.

Also Read: Bitcoin Price and Crypto Market Tank Over SEC’s Action on Coinbase

The US SEC has increased its scrutiny against the crypto firms by utilizing its new tool in trend “Wells Notice”. However, Gary Gensler, SEC Chair has already cleared his stance against the digital asset industry, The year 2023, till now has seen the commission suing crypto firms like Genesis for not registering its crypto lending scheme. Read More Crypto News Here…

Coinbase in its blog stated that they were prepared for this disappointing development, however, the company is confident with the legality of its assets and services. It added that if needed, Coinbase will welcome a legal process in order to provide clarity over the matter.

The crypto exchange has alleged that the US SEC has not been fair or reasonable when it comes to its engagement around digital assets.

Also Read: Tron’s Justin Sun Slams the US SEC After Lawsuit