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Even with regulatory inquiries and investor skepticism, Coinbase Global Inc. (Nasdaq: COIN) — the largest crypto exchange in the U.S.— soared 9.01% on May 16, closing at $266.46.
The jump was bolstered just days before the S&P Dow Jones Indices announced Coinbase's relocation into the S&P 500 index on May 19.
Coinbase shares soared 9% to $266.46 on May 16, boosted by S&P 500 inclusion despite ongoing SEC scrutiny.
Nonetheless, there are new headwinds for the rally. On May 15, reports surfaced that the U.S. Securities and Exchange Commission (SEC) is investigating whether Coinbase misrepresented user numbers in past disclosures.
This investigation is another litigation headwind for the exchange on top of its own ongoing litigation with the SEC around whether particular tokens listed on its platform are securities.
Coinbase CEO Brian Armstrong made headlines earlier this week with a bold statement about allowing cryptocurrency in 401(k) retirement accounts—an idea that sparked both excitement and criticism among traditional investors.