Coinbase (NASDAQ:COIN) is being dealt several blows this week. First, the company is reckoning with the slowing market during Q2, posting a disappointing earnings report. Then, it has to deal with a multitude of controversies stemming from U.S. Securities and Exchange Commission (SEC) probes, one of which is only just being revealed. COIN stock is thus holding on for dear life, opening another day on a decline.

It may not be a surprise that a crypto exchange suffered a bad quarter during the time that the crypto industry plummeted into disarray. Indeed, as the global crypto market cap fell below $1 trillion for the first time since January 2021, investors weren’t keen on buying crypto.

So, Tuesday’s poor earnings showing isn’t a total surprise. The company is posting a loss of just over $1 billion for Q2, resulting in a loss of about $5 per share. Meanwhile, revenue is falling by a whopping $1.2 billion, with the company pulling in $71 million less than analyst projections. This news is leading to a bout of bearishness regarding Coinbase. Some analysts are massively downgrading the stock, and price projections expect losses to pile up.

But this isn’t all of the bad press for the company. Coinbase is also hindered by a number of legal controversies. Scrutiny over the crypto space is ramping up in the U.S., and as one of the biggest household names in the business, Coinbase is suffering the brunt of it.

The SEC is starting to assert itself more and more in this space. In late July, it launched its first probe into Coinbase, alleging the company conducted at least nine different unregistered security offerings. This week, it is doubling down on the investigations with new accusations against Coinbase.

Coinbase Facing Second Ongoing SEC Investigation

This investigation by the SEC has far-reaching implications for Coinbase. The SEC’s lawsuit against Ripple (XRP-USD) alleges that it conducted only one unregistered security offering. This case has now dragged on for almost two years, and it doesn’t seem close to ending. Coinbase will have to speak for far more purported crimes. And now, there’s a new investigation dragging the company down.

Coinbase’s crypto staking and yield farming products are the subject of a second ongoing investigation by the SEC. In its quarterly report, investors might have been caught up on the numbers. But, the company also revealed that the SEC is subpoenaing it for documents and other information pertaining to staking products.

The SEC is quiet on this new investigative front. Coinbase’s 10-Q does not disclose any information around why the SEC is looking at these products. However, it’s worth noting that staking commission is a major aspect of the company’s revenue. The company takes a 25% commission on all yield generated through its staking tools. It’s also worth noting that none of the tokens that Coinbase offers staking rewards for are any of the nine assets labeled by the SEC as securities in its other investigation.

This pair of bearish stories is doing well to hold down COIN stock values today. Shares are losing 5% after trading in the green during premarket trading.