Coinbase closed at $52.93 on Tuesday, 21% down from the day’s starting price of $61.74. It is now down 75% on the year, and 84% down from its all-time high .
The decline is likely related to the Securities and Exchange Commission (SEC)’s newly revealed probe against the popular exchange. SEC believes that some of the cryptocurrencies listed at Coinbase are unregistered securities.
Out of 150 coins and tokens available on the platform, it claims that ENS, GALA, POWR, and ALCX are securities. Coinbase is also reeling from the latest indictment of a former product manager on charges of insider trading. Coinbase was forced to lay off 18% of staff in June in response to macroeconomic conditions.
During this time, the SEC clashed with Coinbase over tokens such as ENS, GALA, POWR, and ALCX and classified them to be securities. However, the DOJ and the CFTC do not appear to be in agreement with the SEC’s statements.CFTC Commissioner Caroline D. Pham said that the move to investigate nine tokens mentioned in the indictment as securities could potentially have “far-reaching implications for future legal disputes and consumers alike.”Coinbase has previously asked the SEC to develop a framework for digital asset securities.