Coinbase Faces Ongoing SEC Probe Over User Metrics – Coincu

Coinbase is currently under SEC investigation concerning its previous reporting of “verified users.” This probe began during the Trump administration but continues unresolved. The investigation’s focus on transparency in user metrics could impact Coinbase’s standing with regulators and market trust.

SEC Questions Accuracy of Coinbase User Reports

Coinbase’s user metrics practices have drawn ongoing scrutiny from the SEC, questioning the accuracy of previously reported figures. This investigation, initiated under the previous administration, critiques the inclusion of users who merely verified contact information. Coinbase has expressed its intent to conclude this matter cooperatively.Coinbase’s transition to “monthly transacting users” reflects an effort to depict more precise user engagement. Paul Grewal, Chief Legal Officer at Coinbase, emphasized discontinuing the metric in question over two years ago. Grewal stated:

“This is a hold-over investigation from the prior administration about a metric we stopped reporting two and a half years ago, which was fully disclosed to the public. While we strongly believe this investigation should not continue, we remain committed to working with the SEC to bring this matter to a close.”

The broader market and community have maintained a watchful eye on regulatory actions toward crypto exchanges. Community figures like Phil Mataras advocate for minimizing trust-based mechanisms, underscoring the need for transparency.

SEC Questions Accuracy of Coinbase User Reports

Coinbase’s user metrics practices have drawn ongoing scrutiny from the SEC, questioning the accuracy of previously reported figures. This investigation, initiated under the previous administration, critiques the inclusion of users who merely verified contact information. Coinbase has expressed its intent to conclude this matter cooperatively.

Coinbase’s transition to “monthly transacting users” reflects an effort to depict more precise user engagement. Paul Grewal, Chief Legal Officer at Coinbase, emphasized discontinuing the metric in question over two years ago.

“This is a hold-over investigation from the prior administration about a metric we stopped reporting two and a half years ago, which was fully disclosed to the public. While we strongly believe this investigation should not continue, we remain committed to working with the SEC to bring this matter to a close.”

The broader market and community have maintained a watchful eye on regulatory actions toward crypto exchanges. Community figures like Phil Mataras advocate for minimizing trust-based mechanisms, underscoring the need for transparency.

Implications and Potential Regulatory Shifts

Did you know? The SEC’s focus on Coinbase’s user metrics aligns with its history of scrutinizing metric disclosures to ensure market integrity. Past cases, while often short-term, highlight a continuous regulatory commitment to transparency.

Based on CoinMarketCap data, Bitcoin (BTC) was priced at $103,846.60, holding a market cap of $2.06 trillion as of May 16, 2025. It saw a price increase of 2.02 percent over 24 hours with a seven-day slight dip of 0.03 percent. Its circulating supply—19,865,290 out of a maximum of 21,000,000—remains consistent, illustrating the asset’s tightly controlled availability.

Coincu’s research team indicates potential implications of the SEC probe could extend beyond immediate market reactions. Anticipated outcomes involve possible refinements in regulatory frameworks focusing on cryptocurrency reporting and broader transparency. Such developments might reshape user engagement metrics industry-wide, driving a push toward decentralized systems.