Coinbase Is Facing an ‘Existential Risk’ as SEC Reins In Crypto
- An SEC crackdown could upend business of crypto exchange
- Revenue, shares have tumbled since peak of digital token mania
Photographer: Leon Neal/Getty Images
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When Coinbase Global Inc. became the first US crypto exchange to go public, the Nasdaq debut was seen as a sign the freewheeling industry was joining the financial mainstream with the blessing of US regulators.
The materials Coinbase circulated to investors, however, flagged a major risk: The Securities and Exchange Commission could decide that some tokens traded on Coinbase’s platform are securities just like stocks or bonds — bringing all the regulations that come with it.