The SEC is investigating Coinbase over its coin listings: Bloomberg

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The SEC is investigating Coinbase over its coin listings: Bloomberg
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ICYMI: The SEC is investigating Coinbase over its coin listings: Bloomberg

The SEC is investigating Coinbase for allowing trading in several tokens that should have been listed as securities, Bloomberg reports.

The enforcement investigation predates insider trading allegations against a former Coinbase employee and his associates. The US Securities and Exchange Commission is investigating Coinbase for improperly allowing trading in several tokens that should have been registered as securities, according to a report fromCoinbase has been in the regulator's crosshairs after a former employee and two of his associates last week werefor alleged wire fraud. The SEC filed a parallel complaint alleging insider trading, over which it has purview if the alleged crime involves securities.

"This is the exact topic for which we recently submitted a petition for rulemaking to the SEC. In that petition, we highlight the need for clarity around regulation of crypto securities," a Coinbase spokesperson told The Block.

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