The U.S. Securities and Exchange Commission has specifically targeted several Ethereum-based altcoins on Coinbase before sending today’s Wells Notice to the leading crypto exchange.
Back in July, in its insider trading case against a former Coinbase employee, the SEC called out nine crypto assets that it believes are securities – and six of those assets remain on the exchange today.
These coins are Amp (AMP), LCX(LCX), Power Ledger [POWR], Rally (RLY), XYO Network (“XYO”), and DerivaDAO® (DDX).
At the time, Coinbase strongly rejected the claim that the above crypto assets are securities, citing its “rigorous” and “SEC-reviewed” process for determining which assets are listed on the exchange.
Today, Coinbase received a Wells Notice from the SEC. The Wells Notice stated that the agency has made a preliminary finding and recommends that Coinbase be filed an enforcement action.
Coinbase says the notice targets an “undefined portion” of its listed digital assets, as well as the company’s staking service Coinbase Earn, its institutional arm Coinbase Prime, and its non-custodial Coinbase Wallet.
The exchange said it was happy to defend its products in court, and noted that it continued to operate on all fronts.
This news comes amid volatile trading conditions for Bitcoin and crypto markets, following a quarter-point rate hike by the Federal Reserve.
Bitcoin (BTC), currently trading at $27.397 as of the time this article was published, down 2.7% in 24 hours.
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