The US SEC is looking into Coinbase over the sale of digital currencies that the agency views as securities.
Related: CFTC Chair Revealed Creating a New Crypto Regulation Office
A Bloomberg article says that people familiar with the subject noted that the SEC increased scrutiny around Coinbase after the platform added the number of cryptos it offers for trading. A few days ago, it became known that an ex product manager at the firm was arrested for conducting insider trading.
According to the SEC, 9 of the involved cryptos were unlisted securities.
The US regulators added efforts to supervise the crypto sector after the recent fall of prices, which led to significant losses.Responding to the agency's release, Coinbase Chief Legal Officer Paul Grewal said that the platform doesn't list securities. He added that before adding cryptos, Coinbase analyzes if they could be viewed as a security and if they comply with regulations.
Previously, Coinbase asked the financial regulators to create a framework for digital asset securities.