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“For tracking litigation, enforcement, and regulatory developments, Compliance Week
should be your prime source.”- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
Coinbase faces a leftover SEC probe as crypto enforcement loses steam
By 
Oscar Gonzalez2025-05-16T19:24:00
After dismissing its lawsuit against the crypto exchange Coinbase in March, a second investigation into the exchange by the Securities and Exchange Commission has surfaced, according to a report from the New York Times. This comes as a bit of a surprise after the Trump administration has been scaling down regulatory enforcement on cryptocurrency companies in favor of scaling up mainstream adoption.
The SEC’s investigation into Coinbase stems from claims the company made in securities filings and marketing materials regarding its verified users. Coinbase claims it has more than 100 million “verified users” from as early as 2021 up until 2023, and the agency is investigating whether these numbers were misstated.
Paul Grewal, Coinbase’s chief legal officer, says the investigation should not continue, but the company will continue working with the SEC to bring the matter to a close.
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