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Before Coinbase Wells Notification, SEC Targets 6 Ethereum Altcoins

Before filing today’s Wells Notice to Coinbase, the SEC targeted many Ethereum-based altcoins on the main crypto exchange.

The SEC identified nine crypto assets as securities in its insider trading lawsuit against a former Coinbase employee in July, six of which remain on the exchange.

Amp, LCX, Power Ledger, Rally, XYO Network, and DerivaDAO are the coins (DDX).

Coinbase denied the above crypto assets were securities, claiming its “rigorous” and “SEC-reviewed” listing process.

The SEC served Coinbase a Wells Notice today, stating that it has reached a preliminary determination to pursue an enforcement action against Coinbase.

Coinbase said the notice targets a “unknown fraction” of its listed digital assets, its staking tool Coinbase Earn, its institutional arm Coinbase Prime, and its non-custodial Coinbase Wallet.

The exchange says it appreciates the chance to defend its products in court and continues to function as usual on all fronts.

After a Federal Reserve quarter-point rate hike, Bitcoin and crypto markets were tumultuous.

Bitcoin (BTC) dropped 2.7% in 24 hours to $27,397.