The Securities and Exchange Commission sent a Wells notice to the cryptocurrency exchange Coinbase to let the company know that it found possible violations of U.S. securities law. Source - CNBC After the news came out on Wednesday, Coinbase shares fell nearly 12% during extended trading. This was on top of an 8.16% drop during regular trading hours. In a regulatory filing, Coinbase said, "Based on discussions with the Staff, the Company believes that these possible enforcement actions would be related to the Company's spot market, staking service Coinbase Earn, Coinbase Prime, and Coinbase Wallet." "The possible civil action could ask for a court order, money back, and civil penalties." The SEC is cracking down harder on companies and projects it says were selling unregistered securities in the cryptocurrency industry. In the middle of 2022, there were first rumors that the SEC would look into Coinbase. Months before the fall of FTX in November, rising interes...