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SEC sues Coinbase for acting as an unregistered broker
The U.S. Securities and Exchange Commission (SEC) Filed lawsuit against Coinbaseone of the world’s leading cryptocurrency exchanges.
this latest cryptocurrency news The announcement comes just 24 hours after the SEC filed a lawsuit against rival exchange Binance.
The SEC filed a lawsuit minutes ago, claiming Coinbase never registered as a broker, national stock exchange, or clearing house. The SEC therefore alleges that Coinbase is circumventing securities market disclosure regimes.
Regulators have claimed that some tokens offered by cryptocurrency exchanges are securities. The SEC filed suit in New York federal court.
Coinbase has yet to respond to the lawsuit. This latest development comes as the SEC and Coinbase have been battling lawsuits for the past few months.
Earlier this year, the SEC issued a Wells Notice to Coinbase, suggesting it was investigating issues with the cryptocurrency exchange.
current cryptocurrency exchange filed a lawsuit against the SEC In April, it asked securities regulators to answer “yes” or “no” to the commission’s request to draft and approve rules specific to digital assets.
US SEC Coming After Exchanges
The lawsuit against Coinbase will be filed just 24 hours after the lawsuit. SEC pursued Binancethe world’s largest cryptocurrency exchange by daily trading volume.
The SEC alleges that Binance is serving high-value U.S. customers on its platform, which violates U.S. securities laws.
The regulator also added that Binance’s CEO controls client assets and combines them with individual and corporate holdings.
The SEC has been pursuing cryptocurrency exchanges, including Kraken, in recent months.
Following this latest development, Coinbase’s share price fell more than 15% during Tuesday’s pre-market trading session. COIN is currently trading at $49.44 per share.
