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SEC Subpoenas Coinbase Over Staking and Yield Products

Coinbase is facing a probe by the United States SEC over its yield and staking products, according to its quarterly filing.

The post SEC Subpoenas Coinbase Over Staking and Yield Products appeared first on BeInCrypto.

Coinbase is facing a probe by the U.S. SEC over its yield and staking products, according to its quarterly filing.

The United States Securities and Exchange Commission (SEC) is investigating yield and staking products of crypto exchange Coinbase, according to a quarterly report. The exchange has received investigative subpoenas from the SEC.

The probe will be another thorn in Coinbase’s side, which is rumored to be facing an investigation over the listing of certain assets, which the SEC allegedly believes are securities. It is also facing a new lawsuit, which alleges that it made “materially false and misleading statements.”

Regarding the investigative subpoenas, the Coinbase report reads,

“The Company has received investigative subpoenas and requests from the [U.S. Securities and Exchange Commission] for documents and information about certain customer programs, operations, and existing and intended future products, including the Company’s processes for listing assets, the classification of certain listed assets, its staking programs, and its stablecoin and yield-generating products.”

Staking and yield generating are two means that many platforms use to allow users to earn more from their holdings. They have both been very successful in terms of user engagement over the past few years, but this success is catching the attention of regulators.

The investigation by the SEC is a sign that the regulator is not taking any activity by exchanges lightly. The SEC has ramped up its investigation of all activities in the crypto market, and Coinbase appears front and center in its sights, being the major exchange that it is.

Coinbase has been having a somewhat tough time in recent weeks. The financials for the second quarter saw the company report a loss of over $1 billion. It pinned the blame on the crypto market crash.

However, it’s not all doom and gloom for the exchange. It announced a partnership with BlackRock, which allows the latter to offer crypto to its clients. The collaboration bridges BlackRock’s Aladdin software toolset with Coinbase Prime.

As for the SEC, it has become clear that the regulator is not going to take its foot off the pedal. A staff member from Senator Cynthia Lummis’ office said that the SEC was investigating every U.S. crypto exchange. There has been no official statement on this, but it would not come as a surprise, as the SEC has made it clear that it wants the crypto market to operate within the law.

The post SEC Subpoenas Coinbase Over Staking and Yield Products appeared first on BeInCrypto.

Source: Markets – BeInCrypto

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Altcoins

Nasdaq focused on crypto custody services but no plans for crypto platform yet

In September, the world’s second-largest stock exchange Nasdaq announced that it will offer custody…

The post Nasdaq focused on crypto custody services but no plans for crypto platform yet appeared first on CoinJournal.

In September, the world’s second-largest stock exchange Nasdaq announced that it will offer custody services for Bitcoin (BTC) and Ether (ETH) to institutional investors. Nasdaq hired Ira Auerbach, a former Gemini employee, to head the new Nasdaq Digital Assets unit.

The main reason the new Nasdaq Digital Assets Unit was targeted toward institutional investors is the remarkable growth in crypto adoption among this class of investors in the past few years. While investing in cryptocurrencies is one thing, safeguarding the accumulated crypto holdings is another and company-owned crypto funds require special handling thus the need for custodial services.

While many crypto exchanges already offer crypto custody services for institutional investors, many believe the institutional investors’ space is largely neglected and Nasdaq is not late for the party.

No plans for a Nasdaq crypto platform yet

Despite Nasdaq jumping into the crypto space with the crypto custody services, the company’s executive vice president and head of North American markets, Tal Cohen, said that the company shall wait for further clarity in crypto regulations and global crypto adoption before it decides on whether to launch a crypto platform.

Speaking to Bloomberg TV, Cohen said:

“Those are discussions we are happy to have. But right now, on the retail side, the market is fairly saturated. There’s a number of exchanges servicing the retail customer base.”

Nasdaq instead plans to stick to its crypto custody services citing massive demand and opportunity from customers.

Cohen said:

“We think if you can safe-keep peoples’ assets, they’ll trust you to do everything else afterwards.”

Cohen also said that besides the custody services, the stock exchange was working on facilitating the transfer of digital assets.

The post Nasdaq focused on crypto custody services but no plans for crypto platform yet appeared first on CoinJournal.

Source: CoinJournal: Latest Bitcoin, Ethereum & Crypto News

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