Summary
- The Securities and Exchange Commission (SEC) recently revealed its intentions to go after Coinbase, even after approving the company’s Initial Public Offering (IPO).
- Coinbase is now subject to increased regulation, particularly when it comes to protecting customer assets and preventing fraud.
- The SEC could pursue further action against Coinbase depending on their compliance with existing regulations.
Background Information
Coinbase is one of the world’s leading cryptocurrency exchanges. The company recently made history by becoming the first major U.S. cryptocurrency exchange to list itself on a public stock exchange via an Initial Public Offering (IPO). However, despite receiving approval for its IPO from the Securities and Exchange Commission (SEC), it appears that the regulator is still considering taking action against Coinbase.
SEC Interest in Coinbase
The SEC has expressed interest in Coinbase due to concerns about how the company manages customer assets and how they prevent fraud or manipulation of markets. These are two issues that are of particular concern for any financial institution. As such, Coinbase will be required to comply with all relevant securities laws, which could result in further action being taken against them by the SEC if they fail to do so.
Potential Outcomes
If Coinbase fails to comply with existing regulations, then they may face additional penalties or sanctions from the SEC. This could include fines, suspensions or revocations of licenses, or even criminal charges against individual employees if necessary. Furthermore, failure to comply may lead other regulatory bodies such as FINRA or state regulators to take similar actions against them as well.
Conclusion
Overall, it is clear that despite receiving approval for its IPO from the SEC, Coinbase is still subject to increased regulation and scrutiny from both federal and state authorities. It remains to be seen what kind of action will be taken by these regulatory bodies if Coinbase fails to meet their standards of compliance with existing regulations.