Regulatory uncertainty prompted ARK Invest to reduce the volume of shares purchased by bitcoin exchange Coinbase funds. This was stated by the CEO of management company Kathy Wood in an interview with Bloomberg.

This is how the senior executive described the investigation SEC Coinbase activities. The agency was skeptical of the platform, which gives US residents access to trade in digital assets that could be considered securities.

Five days ago, the Commission sued former Coinbase product manager Ishan Wahi and his partners for alleged investment contract fraud. Thus, the SEC has classified 9 out of 25 cryptocurrencies allegedly used by the defendants in their operations.

Going forward, Coinbase has confirmed that it has received requests from the regulator regarding transactions, products, and listings.

On July 26, ARK Invest sold a total of 1.41 million shares of a cryptocurrency exchange worth approximately $75 million. On that day, the platform’s capitalization fell by 21.1%, but increased by 80% afterwards. The firm still owns approximately 7.1 million Coinbase shares through the funds.

According to Wood, ARK Invest found it difficult to predict how many Coinbase assets should be delisted if they are not registered with the SEC, or how the exchange’s business model will change if the platform decides to take that step.

The CEO stressed that accusations of insider trading by Coinbase employees are not grounds for selling shares.

Kathy Wood expresses confidence that politics will soon turn around fed The US economy is in recession. He expressed his commitment to the strategy of acquiring innovative companies so that they “will succeed in difficult times”.

As a reminder, S&P Global downgraded Coinbase’s corporate rating from ‘BB+’ to ‘BB’, keeping the outlook ‘negative’.

Previously, two class action lawsuits were filed against the exchange. According to the documents, Coinbase was offering investors cryptocurrency assets that had to be registered as securities.

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