Coinbase said the SEC is looking into different aspects of the crypto company’s business, including “existing and intended future products,” according to a regulatory filing.
Coinbase said it has received “investigative subpoenas and requests from the SEC for documents and information” about company operations and programs.
CEO Brian Armstrong had mentioned the SEC probe during the company’s earnings call on Tuesday, saying Coinbase received “a voluntary request for information, including about our asset listings process.”
“We do not yet know if this inquiry will become a formal investigation,” Armstrong told analysts. “We're committed to a productive discussion with the SEC around digital assets and securities regulation.”
The latest disclosure confirms earlier reports that the SEC has launched an investigation focused on whether Coinbase offers crypto currencies and other digital assets that should be registered as securities. Coinbase has maintained that it does not list securities.
Coinbase said in the filing that the SEC was interested in its “processes for listing assets, the classification of certain listed assets, its staking programs, and its stablecoin and yield-generating products.”
The probe comes at a time when Coinbase is grappling with the impact of the crypto crash, which has shed $2 trillion in value over the last eight months.
Coinbase on Tuesday reported weak quarterly results, including a $1.1 billion loss and big drop in revenue. The company has been forced to slash expenses and recently reduced its workforce by 18%.
Goldman Sachs analysts on Wednesday told clients that while Coinbase management “has navigated the turbulence in crypto markets well,” they expect the company’s stock to “underperform as long as retail engagement with crypto remains weak and regulatory uncertainty in the U.S. remains.”