SEC scrutiny drags Coinbase down

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

Bloomberg reports that 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.

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.