On the Bitifinex exchange, Bitcoin was down 4.48% to $7,341 at 10:30PM ET (02:30 GMT) .
The SEC enquired several brokerages and questioned their business practices and how they deal with clients, citing two people familiar with the matter.
The regulator mainly focused on fees generated form trading, financing and initial coin offerings, according to the reports.
The news came the Financial Industry Regulatory Authority and the National Futures Association made similar moves earlier this year.
John L. Jacobs, executive director of Georgetown University’s Center for Financial Markets and Policy, said, “They the regulators are trying to understand the whole ecosystem. They’re still wrestling with how to make sure that this is an organized efficient marketplace.”
Elsewhere, UBS released a report on Thursday that suggested Bitcoin could replace U.S. money supply, but only if its price reaches $213,000 or if its network’s processing capabilities advance drastically.
The report stated, “Our findings suggest that Bitcoin, in its current form, is too unstable and limited to become a viable means of payment for global transactions or a mainstream asset class.”/investing.com