SEC Review of Coinbase User Metrics Sparks Uncertainty, Minimal Market Impact

The Securities and Exchange Commission (SEC) is currently reviewing Coinbase’s 2021 user-metric disclosures, a probe stemming from past reporting practices. This move follows a holdover investigation initiated during the previous administration. While there have been market fluctuations, experts state that these are largely attributed to investor sentiment rather than direct financial losses. 2021 saw Coinbase discontinue the metric in question, which was previously disclosed to the public over two years ago, according to Coinbase’s Chief Legal Officer Paul Grewal. Coinbase is currently working with the SEC to resolve the matter.