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Coinbase’s SEC Review Means Price Drop

Altcoin prices and bitcoin prices sna

Altcoin prices plummeted on Tuesday as a reported US Securities and Exchange Commission (SEC) investigation into the Coinbase cryptocurrency exchange shook the market.

Accordingly, Bitcoin’s decline continued as the world’s largest digital asset fell about 4%, falling below $21,000 around the time conventional markets in North America closed. (All crypto prices are based on CoinMarketCap data.)

Uniswap, convex down 14%

WAVES was down 20% just before the traditional markets closed, but the coin then quickly recovered. It was still down about 5%.

Uniswap (UNI) and Convex (CVX) are both down 14%, while Polygon (MATIC), Apecoin (APE), Stepn (GMT) and Synthetix (SNX) are all down 10%.

UNI to USD

The SEC exam is increasing

The SEC is investigating whether Coinbase is allowing Americans to trade assets that should have been registered as securities, Bloomberg reported, citing three unidentified sources familiar with the investigation.

Two of the sources told Bloomberg that the SEC has increased its scrutiny of Coinbase since the exchange has offered more tokens for trading.

“We are confident that our rigorous due diligence process — a process that the SEC has already reviewed — keeps securities off our platform, and we look forward to working with the SEC on this matter,” said Paul Grewal, Coinbase’s chief legal officer , on twitter.

The SEC declined comment.

Coinbase stock is falling

On Tuesday, Coinbase shares (COIN) closed up 21.08% on the NASDAQ Global Select Market. Coinbase announced in its first-quarter earnings report that the SEC was investigating some of its client programs, operations, and proposed future products, including the company’s stablecoin and yield-farming initiatives.

According to Bloomberg, the SEC investigation precedes an investigation into an alleged insider trading scheme that prompted the regulator to sue a former Coinbase executive and two others. SEC Chief Gary Gensler has taken a tough stance on cryptocurrency while President Joe Biden’s administration decides how to regulate the sector.

Gensler has shown a clear desire to regulate digital assets as securities. So far, the SEC’s concerns have centered on how crypto developers have raised funds before holding Initial Coin Offerings (ICOs).

Gensler views coins as securities

In July 2021, Gensler told the Aspen Security Forum that he believes all digital tokens and ICOs violate US securities laws. Gensler’s attitude is similar to that of his predecessor, Jay Clayton.

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Gensler claims that cryptocurrencies could allow markets to be manipulated and inflict huge losses on investors.

The crypto industry is closely watching the SEC lawsuit against Ripple, the company behind the XRP coin. The SEC alleges Ripple sold unregistered securities while raising funds for its ICO.

But the company has firmly resisted.

Second day of acceptance

Tuesday marked the second day of widespread declines in the crypto sector after it rallied last week. Bitcoin challenged $24,000 on Friday.

Prior to last week, analysts and other bitcoin watchers were wondering if bitcoin would stay below $18,000.

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