Crypto exchange Coinbase faces SEC probe: Bloomberg

(Reuters) — The U.S. Securities and Exchange Commission is investigating whether Coinbase Global Inc. improperly let Americans trade digital assets that should have been registered as securities, Bloomberg News reported Monday.

A Coinbase spokesperson told Reuters the company does not list securities on its platform, while the regulator declined to comment on the report.

The company's legal head, Paul Grewal, said Coinbase will engage with the SEC on the matter. “We are confident that our rigorous diligence process — a process the SEC has already reviewed — keeps securities off our platform,” he said.

The SEC's scrutiny has increased ever since the crypto trading platform expanded the number of tokens in which it offers trading, the Bloomberg report said, citing two sources.