US SEC sues crypto exchange Coinbase
A day after suing crypto exchange Binance, the US Securities and Exchange Commission (SEC) on Wednesday charged Coinbase with operating its crypto asset trading platform as an unregistered national securities exchange, broker, and clearing agency.
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Washington: A day after suing crypto exchange Binance, the US Securities and Exchange Commission (SEC) on Wednesday charged Coinbase with operating its crypto asset trading platform as an unregistered national securities exchange, broker, and clearing agency.
The SEC also charged Coinbase for failing to register the offer and sale of its crypto asset staking-as-a-service program. According to the SEC's complaint, Coinbase has made billions of dollars unlawfully facilitating the buying and selling of crypto asset securities.
"We allege that Coinbase, despite being subject to the securities laws, commingled and unlawfully offered exchange, broker-dealer, and clearinghouse functions," said SEC Chair Gary Gensler.
According to the complaint, Coinbase's alleged failures deprive investors of critical protections, including rulebooks that prevent fraud and manipulation, proper disclosure, safeguards against conflicts of interest, and routine inspection by the SEC.
