According to Breaking News, Coinbase, the largest cryptocurrency exchange in the United States, received some good news shortly after President Donald Trump took office.
However, this development may not be the end of Coinbase’s legal issues.
The SEC is investigating whether Coinbase misrepresented users in previous public submissions, according to four people familiar with the issue. The investigation begins during the Biden administration and continues under Trump.
The previously unpublished study focuses on Coinbase’s “over 100 million verified users” statement in its 2021 IPO documents and marketing materials. The company stopped using its metrics by 2023.
According to two people familiar with the issue, Coinbase has been in touch with the SEC throughout the year to prepare law firm Davis Polk & Wardwell for its defense.
A spokesman for the SEC said he would not comment on the existence or absence of the investigation.
Coinbase Chief Legal Officer Paul Grewal said in a statement that the investigation was “in relation to previous administration indicators that have not been reported in two and a half years.” “We strongly believe this investigation should not proceed, but we are working to work with the SEC to close this issue,” Grewal said.
The research shows that despite the SEC primarily dismantling its dedicated cryptographic units, scrutiny of Washington’s crypto sector is not completely over.
Since Trump took office in January, the SEC has dropped more than a dozen investigations and lawsuits against crypto companies, including a 2023 lawsuit against Coinbase. Paul Atkins, the new SEC chairman, is known to be a crypto ally, and Trump himself is known to be involved in several crypto ventures.
*This is not investment advice.
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