Coinbase (NASDAQ:COIN) stock is falling on Thursday after the Securities and Exchange Commission (SEC) threatened to investigate the crypto exchange.
This comes after the SEC sent a “Wells Notice” to Coinbase. That means the agency intends to recommend enforcement action against the company. However, these notices don’t mean any wrongdoing has happened and don’t always result in charges.
According to Coinbase, the Wells Notice is connected to its spot market and various other products. Among them are its Earn, Prime, and Wallet offerings.
How This Affects Coin Stock
COIN stock may be in trouble as it could have to battle with the SEC over its staking business. This is unregistered and may result in fines for the company.
Traders saw something similar last month when rival crypto exchange Kraken paid $30 million to the SEC. This settled allegations against its unregistered staking service, which was shut down.
Following this news, some 1.7 million shares of COIN stock have changed hands. That’s still a far way off from the 19.5 million shares the crypto exchange company sees trade on average daily.
Even so, shares of COIN stock are still down 14.7% in pre-market trading on Thursday. Investors will note that COIN shares are up 129.6% since the start of the year when markets closed yesterday.
Stock traders seeking out more of the latest market news will want to keep reading!
We’ve got all of the latest news affecting the stock market on Thursday! A few examples include why shares of ZyVersa Therapeutics (NASDAQ:ZVSA) and Advent Technologies (NASDAQ:ADN) stock are rising, and the biggest pre-market stock movers this morning. We’ve got all that news ready to go at the links below!
More Thursday Stock Market News
- Why Is Advent Technologies (ADN) Stock Up 32% Today?
- Why Is ZyVersa Therapeutics (ZVSA) Stock Up 35% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Thursday
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.