Coinbase stock opens down over 7% as the exchange faces SEC scrutiny

Coinbase was down 7.71% at the open on Tuesday following news on Monday that the Securities and Exchange Commission (SEC) is investigating the exchange. 

According to a report from Bloomberg, the SEC is investigating Coinbase for improperly allowing trading of several tokens that should have been registered as securities.  

Shares in the company were trading at $61.83 at the time of writing, after closing at $67.07 on Monday. The stock traded down in pre-market trading, reaching as low as $62 before dropping lower again at the open, according to Nasdaq data

Coinbase had a poor second quarter of the year, losing almost 75% of its value. It started in April at over $180 but hit as low as $50 in June. Goldman Sachs downgraded the stock to a sell in June, predicting further layoffs and headwinds for the exchange. 

Trading in the stock had picked up last week, in line with broader financial markets as the Nasdaq composite, the S&P 500 and even cryptocurrencies trended upwards. Yet this trend has halted and, in the case of crypto, completely reversed.

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