The coin base share falls again, what happens next for the fighting exchange?

Nevertheless, the share recovered in 2023, since a weaker forecast of future interest development benefited the technology sector as a whole. And then the second stepped in to end the party this week.

1 today Coinbase has received a notification of Wells from the SEC, which focuses on the stiling and listing of assets. A communication of Wells is usually preceded by a enforcement measure.

- Brian Armstrong (@Brian_armstrong) 22. March 2023

The SEC claims that Coinbase violate the securities law

The SEC has published a Wells announcement in which it warned that it may violate the US Securities Act. The share price has fallen 24 % in the two days since then.

"Based on discussions with the employees, the company believes that these potential enforcement measures on aspects of the company's spot market, the staking service Coinbase Earn, Coinbase Prime and Coinbase Wallet would refer," said Coinbase in an application for admission. "The potential civil lawsuit can strive for injunctive relief, degorable and civil law sanctions."

The market is now waiting for the exact charges, since a message from Wells, as Armstrong found in his tweet above, is usually preceded by legal steps.

Paul Grewal, Chief Legal Officer from Coinbase, also interfered and found that Coinbase was confident in view of the charges.

"Although we do not take this development on our lights, we are very confident of how we run our business - the same business that we presented to the SEC so that we would become a stock corporation in 2021," he wrote.

The regulatory environment deteriorates for crypto further

despite the resistance of Coinbase, at least in public, the reality is that this is only the latest step by the US regulatory authorities to act against crypto.

In the past few months there has been the dramatic shutdown of the StableCoin Busd binance, a top 10 cryptocurrency, a fine for the leading stock exchange in connection with disclosures related to their staking problem, and now this Wells message for Coinbase.

then there is the banking crisis. Although not caused by crypto, the closure of SVB, silver gate and signature means that the most important crypto banks have dissolved in air. This is starving for important Fiat entrances and is an undisputed headwind for the future.

regardless of whether you see one of the above points as unfair or not, the conclusion for coinbase is that the country in which it has its headquarters, the United States, is a much more enemy environment for the crypto industry than a few months ago. Of course, these are bad news for investors and for the company as a whole.

What happens next?

What will happen in the future is difficult to estimate. However, it seems as if the regulatory authorities intend to contain crypto according to the series of scandals that shook the market last year (and billions of losses for customers), including Luna, Celsius and finally FTX.

Before this recent movement, the coin base share price had harvested the positive mood of a recovery of Bitcoin, which is currently being traded at $ 28,000, almost twice as much as after the collapse of the FTX in November.

This follows the broader revival of the technology, since the market is based on the fact that the Federal Reserve is largely finished with the interest rate increases and the extremely tight monetary policy of the past year.

Ultimately, the fate of Coinbase will be bound to these macro. But it will also depend on whether the regulatory authorities have resigned from their punishing attitude in the past few months, and that doesn't seem likely at the moment.