Why Shares of Coinbase Are Falling This Week

For the week, shares of the large crypto exchange Coinbase (NASDAQ: COIN) traded roughly 12% lower after market close Thursday after dealing with regulatory issues that drove bearish sentiment.

Earlier this week, it came to light that Coinbase is being investigated by the Securities and Exchange Commission (SEC) for allegedly allowing users on the platform to trade cryptocurrencies that are not yet registered with the SEC.

There has long been debate over whether cryptocurrencies should be classified as securities and therefore regulated by the SEC. Some think cryptocurrencies should be regulated like other currencies, which are treated as commodities and therefore overseen by the Commodity Futures Trading Commission.

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Source Fool.com