- The SEC is investigating whether a company offers unregistered securities.
- FOr not eVersion case for Iinsider-Tradiate in DrDigital coins, creap FOrmer Coinbase Global Inc. sproduct Mannaager.
- Kathy Woods shares Ark Funds dump Coinbase for the first time this year.
- Coinbase shares are now down about 79% year-to-date, dividends due August 9The tenth.
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It’s been a tough few days for CoinbASE (COIN). The news first emerged late last week that federal prosecutors had arrested a former product manager accused of passing inside information about future token listings to his brother and another investor. The company is facing now A US investigation into whether it improperly allowed Americans to trade digital assets that should have been registered as securities, according to Multiple media reports. The company’s shares are down 21%..
The SEC’s scrutiny of Coinbase has increased since the platform expanded the number of tokens it offers trading with, According to media reports. The investigation by the SEC’s Enforcement Unit precedes the agency’s investigation into an alleged insider trading scheme that led the regulator last week to sue a former Coinbase manager and two other people.
To decide whether a digital asset is a security, the SEC applies a legal test, which comes from a 1946 US Supreme Court decision. Under this framework, the agency considers tokens to be generally under the authority of the SEC when it comes to investors seeking To obtain funds to finance a company with the intent to benefit from the efforts of the organization’s leadership. Paul Grewal, Coinbase Chief Legal Officer, issued the following response: “We are confident that our rigorous process ofAnd the It is a process that the Securities and Exchange Commission has already donereview, and keep securities off our platform, and we look forward to dealing with the Securities and Exchange Commission on this matter.”
TThe only positive news was that the company had not indicted or sued the Department of Justice by the Securities and Exchange Commission (SEC). However, the company is at risk of being classified as operating an illegal stock exchange. Coinbase responded with hostility, criticizing the Securities and Exchange Commission for overreaching and asserting its view that its tokens do not fall within the agency’s purview.
Kathy Woods shares Ark Funds dump Coinbase for the first time this year
Funds controlled by Cathie Wood disposed of shares of Coinbase Global Inc. For the first time this year it has sold more than 1.41 million shares, which were worth about $75 million as of Tuesday’s close, according to Ark’s daily trading data compiled by Bloomberg.Ark was the company’s third-largest shareholder, holding about 8.95 million shares, as of the end of June, according to data compiled by Bloomberg. It’s been largely buying up the platform’s shares since it debuted in 2021 The most recent acquisition took place in May. This is a big loss for ARK as conflicting reports put the average stock purchase price around the $260 mark, with the initial public offering purchase at $328.28 per share.
With all the uncertainty surrounding Coinbase, all eyes will undoubtedly be on its earnings release scheduled for 9The tenth August, after the market closed.
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Written by: Zain Fouda, Market Writer for DailyFX.com
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