https://www.reuters.com/legal/coinbase-issued-wells-notice-by-sec-2023-03-22/ Skip to main content Exclusive news, data and analytics for financial market professionals Learn more about Reuters home * World * Business * Legal * Markets * Breakingviews * Technology * Investigations * More My View Register * * * * * * * * * Securities Enforcement * Regulatory Oversight 2 minute readMarch 22, 202310:56 PM UTCLast Updated ago U.S. SEC threatens to sue Coinbase over some crypto products Reuters People watch as the logo for Coinbase Global Inc, the biggest U.S. cryptocurrency exchange, is displayed on the Nasdaq MarketSite jumbotron at Times Square in New York People watch as the logo for Coinbase Global Inc, the biggest U.S. cryptocurrency exchange, is displayed on the Nasdaq MarketSite jumbotron at Times Square in New York, U.S., April 14, 2021. REUTERS/ Shannon Stapleton/File Photo * Companies * Coinbase Global Inc Follow * U S Securities Stock Transfer Corp Follow * * * * * * * * March 22 (Reuters) - The U.S. Securities and Exchange Commission (SEC) has threatened to sue Coinbase Global Inc (COIN.O) over some of the crypto exchange's products, turning up the heat on the largely unregulated sector. Shares of Coinbase dropped nearly 13% to $67.33 in extended trading after the company said on Wednesday that the regulator had issued it a Wells notice - a formal declaration that SEC staff intend to recommend an enforcement action. The potential enforcement actions would be tied to aspects of Coinbase's spot market as well as its Earn, Prime and Wallet products, the company said. The SEC has been ratcheting up efforts to crack down on the crypto industry since the implosion of FTX last year, and staking services such as Coinbase's Earn are under increased scrutiny for not being registered. Staking is a process in which cryptocurrency holders volunteer to take part in validating transactions on the blockchain. These products often offer customers eye-popping yields. Last month, Kraken agreed to shut down its U.S. cryptocurrency staking service and pay $30 million in penalties to settle SEC charges that it failed to register the program. Earlier in the day, the SEC charged Chinese cryptocurrency entrepreneur Justin Sun with fraud, and accused eight celebrities including actress Lindsay Lohan with illegally promoting his crypto assets. Coinbase said its services continued to operate as usual after the notice was issued. A Wells notice does not always result in charges or signal that the recipient has violated any law. Reporting by Niket Nishant in Bengaluru; Editing by Devika Syamnath * * * * * Our Standards: The Thomson Reuters Trust Principles. Read Next / Editor's Picks * BusinesscategoryModerna CEO defends $130 US COVID vaccine price in Senate hearing, article with video10:53 PM UTC . Updated undefined ago * TechnologycategoryTikTok CEO says company at 'pivotal moment' as some U.S. lawmakers seek ban, article with video10:52 PM UTC . Updated undefined ago * Healthcare & PharmaceuticalscategoryUS FDA declines to approve AbbVie's Parkinson's disease therapy, article with image10:40 PM UTC . Updated undefined ago * United StatescategoryHouse Republicans subpoena labor authorities in Starbucks union dispute, article with image10:37 PM UTC . Updated undefined ago refinitiv_image_desktop Industry Insight * Industry InsightMessaging platform & personal device use is a firm-wide compliance problem [4f19822b-6] Rachel Wolcott March 10, 2023 * Industry InsightWhat a law firm Client Development Manager says about client listening programs [849b8980-8] Sarah Thompson March 9, 2023 * Industry InsightLaw firm leaders express the benefit of strategy, culture & adaptability to weather these uncertain times [b06bc76c-5] Tom Snavely March 1, 2023 * Industry Insight2023 State of the Courts Report: Moving toward modernization [da820977-2] Thomson Reuters Institute February 16, 2023 Site Index Browse * World * Business * Legal * Markets * Breakingviews * Technology * Investigations, opens new tab * Lifestyle About Reuters * About Reuters, opens new tab * Careers, opens new tab * Reuters News Agency, opens new tab * Brand Attribution Guidelines, opens new tab * Reuters Leadership, opens new tab * Reuters Fact Check, opens new tab * Reuters Diversity Report, opens new tab Stay Informed * Download the App, opens new tab * Newsletters, opens new tab Information you can trust Reuters, the news and media division of Thomson Reuters, is the world's largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. Follow Us * * * * * Thomson Reuters Products * Westlaw, opens new tab Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. * Onesource, opens new tab The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. * Checkpoint, opens new tab The industry leader for online information for tax, accounting and finance professionals. Refinitiv Products * Refinitiv Workspace, opens new tab Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. * Refinitiv Data Catalogue, opens new tab Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. * Refinitiv World-Check, opens new tab Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. * Advertise With Us, opens new tab * Advertising Guidelines, opens new tab * Cookies, opens new tab * Terms of Use, opens new tab * Privacy, opens new tab * Digital Accessibility, opens new tab * Corrections, opens new tab * Site Feedback, opens new tab All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays. (c) 2023 Reuters. All rights reserved