Coinbase Global Inc.’s recent hot streak has come to an abrupt end after a warning notice from the Securities and Exchange Commission about potential violation of securities law renewed uncertainty over extensive parts of the biggest US crypto exchange’s business.
Shares of Coinbase plunged 14% in New York, after it disclosed late Wednesday that it had received a so-called Wells notice from the SEC. Coinbase said several business lines could face potential enforcement actions, including spot market, asset listing, staking services, Coinbase Prime, and Coinbase Wallet. In a response, Paul Grewal, chief legal officer of Coinbase, said the company is “confident in the legality” of its assets and services, and will operate its products as usual. The stock registered its longest winning streak on record earlier this week.
