Coinbase disputes ongoing SEC investigation
Coinbase stated Thursday that it opposes a continued regulatory investigation by the U.S. Securities and Exchange Commission (SEC). The probe concerns historical disclosures of monthly transacting users.
The response came after a New York Times report revealed that the SEC is reviewing whether Coinbase accurately reported user data in earlier public filings.
The crypto exchange maintains the matter is outdated and fully addressed.
Coinbase says metric is no longer in use
Paul Grewal, Coinbase’s chief legal officer, emphasized in a statement to Reuters that the company stopped reporting the metric more than two years ago.
“This is a hold-over investigation from the prior administration,” he said. Grewal added that the metric in question had been fully disclosed when it was relevant.
According to Coinbase, continuing this investigation serves no purpose in today’s regulatory environment.
SEC scrutiny puts spotlight on crypto disclosures
This investigation adds to the mounting regulatory pressure facing the U.S.-based Coinbase platform. The SEC has scrutinized several crypto firms over disclosure practices in recent years.
For Coinbase, which is already navigating a complex compliance landscape, the latest development raises concerns about regulatory overreach and legacy enforcement.
Grewal’s comments suggest the company views this as an unnecessary distraction from its current operations.
Coinbase’s public trust remains intact
Despite the headlines, Coinbase remains one of the most transparent and compliant crypto exchanges operating in the U.S. market.
The company went public in 2021 and has since made a point of proactively engaging with regulators. It has also maintained detailed investor communications about key business metrics.
This history of transparency may help Coinbase weather the SEC’s continued probe without major reputational harm.
Implications for crypto regulation and investor trust
The SEC’s actions could set a precedent for how disclosure metrics are treated in the crypto industry. For Coinbase, the case underscores the importance of evolving reporting standards.
If the SEC continues pursuing historical cases, more crypto firms could face audits and legal exposure—even for metrics they no longer report.
The broader implication is a potential chilling effect on crypto innovation in the U.S., with Coinbase once again at the center of the regulatory debate.