Coinbase (COIN, Financial), a leading cryptocurrency exchange, is under investigation by the U.S. Securities and Exchange Commission (SEC) for allegedly misreporting user numbers. The probe focuses on the company's claimed "verified user" count, which it asserts exceeds 100 million across various filings and marketing materials. This revelation led to a 7.2% drop in Coinbase's stock price. The investigation began during the Biden administration, which is known for its critical stance on the crypto industry, and continues under the SEC's current leadership.
In related news, Federal Reserve Chair Jerome Powell highlighted concerns over rising long-term interest rates, noting significant economic changes over the past five years. Powell emphasized that the era of near-zero interest rates is unlikely to return soon, despite inflation expectations aligning with the Fed's 2% target.
Meanwhile, Meta has delayed the release of its flagship AI model, Behemoth, raising internal concerns about the direction of its AI investments. The delay is attributed to challenges in significantly improving the model's capabilities.
