Last week, the U.S. Securities and Exchange Commission (SEC) formally sent Coinbase Global (NASDAQ: COIN) a Wells notice, informing the company that it was considering possible enforcement action. It now appears the SEC will challenge the ability of Coinbase to offer crypto staking services to investors.

After the SEC went after cryptocurrency exchange Kraken earlier this year for staking, it was perhaps inevitable that it would soon turn its attention to other cryptocurrency exchanges such as Coinbase.

As might be expected, investors quickly aligned themselves into two basic camps, as soon as the SEC news came out. The "sky is falling" crowd thought this was the end of the line for Coinbase, and shares of the cryptocurrency exchange promptly fell by 16%. But another camp thought the uncertainty created by the SEC presented a unique buying opportunity. Ark Invest's Cathie Wood, for example, bought the dip, scooping up nearly $18 million worth of Coinbase stock. 

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Source Fool.com