PanaTimes

Saturday, Jan 28, 2023

SEC Probes Coinbase on Staking, Asset Classification, Stablecoin Products

SEC Probes Coinbase on Staking, Asset Classification, Stablecoin Products

Coinbase said the SEC’s requests have to do with the company’s staking programs, asset listing process, classification of assets and stablecoin products.
Coinbase has said it’s being probed by the U.S. Securities and Exchange Commission (SEC) for its staking programs, which lets users earn rewards by holding some cryptocurrencies, according to a filing this week.

The company said it has received some investigative subpoenas and requests from the SEC for documents and information about some customer programs and plans for future products. The requests have to do with the company’s staking programs, asset listing process, classification of assets and stablecoin products.

The company said it doesn’t think these things will negatively affect its profits, though it said there could be some adverse effects later on.

Staking services let users get yield on some crypto holdings, delegating them to help verify transactions and keep the blockchain secure, while trading is down due to market downturns.

In a shareholder letter on Tuesday (Aug. 9), Coinbase says the SEC sent a voluntary request for information in May about its listings and listings process. But the company reportedly didn’t know yet if it would be a bigger investigation.

Coinbase has seen some scrutiny by the SEC as it may have made unregistered securities available for trading, according to Bloomberg.

The company’s earnings came primarily from trading fees, with investors getting out while prices collapses and companies shut their doors.

This resulted in a 64% drop in net revenue, now hitting $803 million, which was twice what analysts had expected.

And monthly transacting users fell to 8 million — a trend which Coinbase thinks will keep going in the third quarter.

Coinbase has painted this as just a part of the cycle, with companies going through up and down cycles before. But CEO Brian Armstrong said that this was the first down cycle after the company went public, so he’s still working out how to explain how crypto up and down cycles work to investors.
Newsletter

Related Articles

PanaTimes
Close
0:00
0:00
Tesla reported record profits and record revenues for 2022
Germany confirms it will provide Ukraine with Leopard 2 tanks
Prince Andrew and Virginia Giuffre Photo Is Fake: Ghislaine Maxwell
Opinion | Israel’s Supreme Court Claims a Veto on Democracy
Moonwalker Buzz Aldrin Gets Married On His 93rd Birthday
Who’s Threatening Israeli Democracy?
Federal Reserve Probes Goldman’s Consumer Business
China's first population drop in six decades
Microsoft is finalising plans to become the latest technology giant to reduce its workforce during a global economic slowdown
Tesla slashes prices globally by as much as 20 percent
1.4 Million Copies Of Prince Harry's Memoir 'Spare' Sold On 1st Day In UK
After Failing To Pay Office Rent, Twitter May Sell User Names
Lisa Marie Presley, singer and daughter of Elvis, dies aged 54
FIFA president questioned by prosecutors
Britain's Sunak breaks silence and admits using private healthcare
Hype and backlash as Harry's memoir goes on sale. Unnamed royal source says prince 'kidnapped by cult of psychotherapy and Meghan'
Saudi Arabia set to overtake India as fastest-growing major economy this year 
Google and Facebook’s dominance in digital ads challenged by rapid ascent of Amazon and TikTok
FTX fraud investigators are digging deeper into Sam Bankman-Fried's inner circle – and reportedly have ex-engineer Nishad Singh in their sights
TikTok CEO Plans to Meet European Union Regulators
France has banned the online sale of paracetamol until February, citing ongoing supply issues
Japan reportedly to give families 1 million yen per child to move out of Tokyo
Will Canada ever become a real democracy?
Hong Kong property brokerages slash payrolls in choppy market
U.S. Moves to Seize Robinhood Shares, Silvergate Accounts Tied to FTX
Effect of EU sanctions on Moscow is ‘less than zero’ – Belgian MEP
Coinbase to Pay $100 Million in Settlement With New York Regulator
FTX assets worth $3.5bn held by Bahamas securities regulator
A Republican congressman-elect is under investigation in New York after he admitted he lied about his education and work experience.
Brazilian football legend Pele, arguably the greatest player ever, has died at the age of 82.
Hong Kong to scrap almost all its Covid rules
EU calls screening of travellers from China unjustified
US imposes Covid testing for visitors from China
Ukraine President Volodymyr Zelenskyy Addresses Joint Session of Congress - FULL SPEECH
Where is Rishi? Chancellor Jeremy Hunt's excuses about the UK's economic challenges just don't make sense
Former FTX CEO Bankman-Fried finally arrested in Bahamas after U.S. files charges
Corruption works: House Financial Services Chair Waters doesn't plan to subpoena her donor, Sam Bankman-Fried, to testify at hearing on FTX collapse
Ronaldo's new contract...
Prince William's godmother resigns honorary royal role after exposing her/their racism
Tax fraud verdict again exposes illusion of Trump the master businessman
Tax fraud verdict again exposes illusion of Trump the master businessman.
Yellen hints at ‘national security’ probe into Twitter purchase
Elon Musk reinstates Donald Trump's Twitter account.
Good news: US moves to shield Saudi crown prince in journalist killing
George W. Bush and Barack Obama will hold back-to-back disinformation conferences
Mission Improbable: Tom Cruise & Queen Elizabeth
Miss Argentina and Miss Puerto Rico are not single anymore
Boris Johnson is about to sign a contract with an American company to get millions for giving speeches. Something he did until very recently for free.
Solar + Powerwall ensures you never lose power, even if the grid goes down
Bavarian Prime Minister Söder: "There is no reason for mask obligations, no lockdowns anymore”
×