If it walks like a dog and barks like a dog, maybe it really is a digital asset security – Meczyki.Net

Coinbase, US-based The cryptocurrency exchange that is the third largest globally is facing “US investigation into whether it lets Americans trade digital assets that should have been registered as securities,” According to a Bloomberg report, The news follows a move last week by the US Department of Justice to arrest and indict a former Coinbase employee and two others on charges of wire fraud and conspiracy to commit wire fraud, alleging that they had money on the crypto exchange. There was a front-run listing.

The US Securities and Exchange Commission separately filed a securities charge against an ex-Coinbase employee for securities fraud, based on the view that the nine digital assets involved in the incident were securities, seven of which are listed on Coinbase, according to a blog post From Coinbase Chief Legal Officer Paul Grewal. Today’s Bloomberg report confirms that a comprehensive SEC investigation into whether Coinbase allowed Americans to trade securities was under way even before the agency filed charges against the former employee.