If those tokens are deemed securities, the firm would need to register as an exchange with the SEC. If this inquiry results in a complaint against Coinbase, the SEC is likely to have a second significant and well-financed legal battle on its hands as the decision in this potential enforcement action, and the case against Ripple, will likely permanently change the crypto industry. If this reported investigation into Coinbase is accurate it will be yet another enforcement action for the SEC's recently expanded Crypto Assets and Cyber Unit in the Division of Enforcement.