Coinbase Global ( NASDAQ: COIN ) stock slid 14% after the bell on Wednesday as the cryptocurrency exchange said it received a Wells Notice from the Securities and Exchange Commission. SEC staff made a preliminary determination to recommend that the agency file an enforcement action against Coinbase ( COIN ) alleging violations of securities laws, including those relating to newly issued and actively traded securities. However, the exchange said the regulator did not specify the potential charges. Coinbase ( COIN ) believes these would relate to its exchange, staking service Coinbase Earn, Coinbase Prime and Coinbase Wallet. The potential civil action may seek injunctive relief, disgorgement, and civil penalties. "We are confident in the legality of our assets and services, and if needed, we welcome a legal process to provide the clarity we've been advocating for and to demonstrate that the SEC simply has not been fair or reasonable when it comes to its engagement on digital assets," the exchange said in a blog post . "Rest assured, Coinbase products and services continue to operate as usual." The exchange said the notice follows multiple proposals it sent to the SEC about registration, "all of which the SEC ultimately refused to respond to." "We asked the SEC specifically to identify which assets on our platforms they believe may be securities, and they declined to do so," said the company. Shares of Coinbase ( COIN ) ended 8.2% lower on Wednesday. Read SA author Josh Arnold's analysis of the stock .
