Coinbase fell on the New York stock exchanges on Thursday. The US securities trading regulator SEC suspects the crypto exchange of multiple violations and plans to crack down on the company.
The market watchdog believes that many companies that facilitate cryptocurrency trading are active in trading securities, such as stocks and bonds, but do not comply with the stricter rules.
Coinbase was down 16 percent. In a statement, the company said it had recently been formally told that the SEC would proceed with enforcement. This could result in lawsuits, penalty payments or fines for the largest crypto exchange in the United States. As a result, analysts from investment bank Oppenheimer removed Coinbase from their buy list.
Investors also chewed on the interest rate decision of the Federal Reserve. On Wednesday, the US central bank raised interest rates by a quarter of a percentage point to combat high inflation. Interest rates also rose further on Thursday in the United Kingdom, Switzerland and Norway. But, like the European Central Bank (ECB) last week, the central banks were not fazed by the recent turmoil in the banking sector.
The US banks showed recovery after the price losses a day earlier. Major banks JPMorgan Chase, Wells Fargo and Bank of America gained up to 1.6 percent. The regional banks First Republic Bank, PacWest Bancorp and Western Alliance Bancorp rose to more than 8 percent. US Treasury Secretary Janet Yellen terrified investors on Wednesday. She said she does not intend to insure all bank balances above $ 250,000.
Shortly after the start of trading, the Dow Jones index was 0.6 percent higher at 32,221.21 points. On Wednesday, the main index fell 1.6 percent. The broad S&P 500 rose 0.8 percent to 3969.66 points, and the tech exchange Nasdaq rose 1.3 percent to 11,816.72 points.
Block plummeted 21 percent. Investment fund Hindenburg Research accuses the mobile payment platform of misleading investors by providing incorrect data about the number of users, among other things. It has taken a so-called short position, betting on a fall in the share price. Block was formerly Square, co-founded by Jack Dorsey, the co-founder and former CEO of Twitter.
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