The Securities and Exchange Commission has notified US-listed crypto exchange Coinbase that it is considering enforcement action against the company as the regulator continues its crackdown on digital assets.
The regulator has issued Coinbase a Wells notice, which warns companies they may face enforcement action in the future. The notice says the SEC has made a “preliminary determination” to recommend action against Coinbase, according to a copy seen by the Financial Times. A potential civil action may involve a request for an injunction, a cease-and-desist order or civil money penalties, among other measures.
The Wells notice is the latest in a growing line of actions the SEC has taken against prominent crypto companies in the US as the agency’s chair, Gary Gensler, takes a tougher stance on an industry he deems largely non-compliant with securities law. Since the start of this year, the financial markets watchdog has fired off a blitz of enforcement actions, including suing lender Genesis and exchange Gemini for failing to register a crypto lending scheme as a securities offering.