6 Ethereum Altcoins The SEC Is Examining

The U.S. Securities and Exchange Commission (SEC) has specifically targeted several Ethereum-based altcoins on Coinbase ahead of today's Wells Notice being sent to the crypto exchange.

The U.S. Securities and Exchange Commission (SEC) has specifically targeted several Ethereum-based altcoins on Coinbase ahead of today’s Wells Notice being sent to the crypto exchange.

In July the SEC, in its insider trading case against a former Coinbase employee, named nine crypto assets it believes are securities — and six of those assets remain tradable on the exchange today.

The coins in question are Amp (AMP), LCX (LCX), Power Ledger (POWR), Rally (RLY), XYO Network (XYO) and DerivaDAO (DDX).

Coinbase rejected the claim that the above crypto assets are securities, citing its "rigorous" and "SEC-reviewed" process for determining which assets are listed on the exchange.

Wells Notice Sent to Coinbase

Today the SEC sent a Wells Notice to Coinbase, saying it has taken a preliminary decision recommending that the agency file an enforcement action against Coinbase.

Coinbase says the notice targets an "undefined portion" of its listed digital assets, as well as the staking service Coinbase Earn, its institutional arm Coinbase Prime, and its non-custodial Coinbase Wallet.

The exchange says it’s happy to defend its products in court if needed, and notes it’s continuing on all fronts.

The news comes amid a choppy day for Bitcoin and the crypto markets after the Federal Reserve raised rates by a quarter point.