Coinbase Staking and Yield Products Being Investigated by SEC, Reveals Quarterly Report

Coinbase has been having a somewhat tough time in recent weeks.

Coinbase Staking and Yield Products Being Investigated by SEC, Reveals Quarterly Report

Photo Credit: Coinbase

The SEC has asked Coinbase to release information on its staking program

Highlights
  • The SEC is investigating Coinbase' processes for listing assets
  • The exchange is currently staring at a number of lawsuits
  • Coinbase believes its legal and regulatory woes won't hamper its targets
Advertisement

Coinbase is facing a probe by the US Securities and Exchange Comission (SEC) over its yield and staking products, according to its quarterly filing. The SEC is investigating yield and staking products of crypto exchange Coinbase, according to a quarterly report. The exchange has received investigative subpoenas from the SEC. The probe will be another thorn in Coinbase's side, which is rumored to be facing an investigation over the listing of certain assets, which the SEC allegedly believes are securities.

Regarding the investigative subpoenas, Coinbase says, "The Company has received investigative subpoenas and requests from the [US Securities and Exchange Commission] for documents and information about certain customer programs, operations, and existing and intended future products, including the Company's processes for listing assets, the classification of certain listed assets, its staking programs, and its stablecoin and yield-generating products."

Staking and yield generating are two means that many platforms use to allow users to earn more from their holdings. They have both been very successful in terms of user engagement over the past few years, but this success is catching the attention of regulators.

Coinbase's disclosure confirms a Bloomberg report from late July, which indicated an SEC probe had been opened that pre-dated the insider trading scandal, although the investigation into Coinbase's staking programs and yield-bearing products was not reported at the time.

Coinbase is currently staring down multiple class action lawsuits including one alleging it allowed its US customers to trade unregistered securities. A separate class action lawsuit, filed in June, alleges Coinbase failed in its duty of care by listing the revamped Terra Classic token and neglected to disclose an alleged financial connection to Terraform Labs.

Despite a shaky year, Coinbase said in its report it believes the resolution of its existing legal and regulatory woes with the SEC would not affect its financial outcomes, health or operations.


Why is Oppo making strange choices with its flagship Reno series? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Cryptocurrency, Coinbase, SEC, Staking
ED's WazirX Probe, Public Spat Among Promoters Said to Reveal 'Dark Side of Crypto'
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »