Cryptocurrencies down, Coinbase stock plunges amid SEC probe

Yahoo Finance's Brian Cheung discusses how the crypto market is trading on news that the SEC is investigating Coinbase.

Video Transcript

BRIAN CHEUNG: Let's take a look at crypto right now as we get a little bit deeper into the trading session on this Tuesday. You can see that right now, Bitcoin and Ethereum having a down day. A lot of that could be because of a spillover from the impact of news headlines that we got regarding Coinbase, which is down 14%.

This is after Bloomberg reported that Coinbase is facing an SEC probe into whether it allowed users to trade digital tokens that should have been registered as securities. For the company's part, Coinbase insisting in a statement this morning that their diligence process keeps securities off the platform. Nonetheless, you can see investors punishing the stock, down 14%. On a year to date basis, by the way, this stock down 77%.