Why Is Coinbase Stock Down 15% Today?

Coinbase Global Inc COIN shares are plunging Tuesday following reports that the U.S. Securities and Exchange Commission is investigating listings on the company's platform.

According to a Bloomberg report, citing three people familiar with the matter, the SEC is investigating whether Coinbase allowed customers to trade digital assets that should have been registered as securities. 

Coinbase chief legal officer Paul Grewal responded to the claims on Twitter Inc TWTR Monday night.

I’m happy to say it again and again: we are confident that our rigorous diligence process—a process the SEC has already reviewed—keeps securities off our platform, and we look forward to engaging with the SEC on the matter. A refresher: https://t.co/SaacvrZEiU

— paulgrewal.eth (@iampaulgrewal) July 26, 2022

The SEC has ramped up its scrutiny of Coinbase ever since the crypto platform expanded the number of tokens it offers for trading, according to the Bloomberg report. 

See Also: Coinbase, Robinhood Shareholders Could Face 30% Dilution: JPMorgan

The news comes just a week after a former Coinbase product manager was arrested and charged with insider trading.

COIN Price Action: Coinbase has a 52-week high of $258.80 and a 52-week low of $40.83.

The stock was down 14.3% at $57.46 at press time, according to data from Benzinga Pro.

Photo: courtesy of Coinbase.