Coinbase revealed on March 22 that they had received a Wells notice from the United States Securities and Exchange Commission (SEC).
The notice indicated that the regulator is considering taking enforcement action against Coinbase, potentially targeting its staking program, Coinbase Earn; listed digital assets; wallet; or Coinbase Prime services for alleged “possible violations of securities laws.”
Coinbase’s chief legal officer Paul Grewal has stated that the SEC had declined to provide specific information about which assets on the platform they believed may be securities.
Grewal has also said that Coinbase had made multiple proposals to the SEC over a period of months and the SEC had refused to respond.
Despite the investigation, Coinbase said its products and services will continue to operate as usual.