- The Securities and Exchange Commission (SEC) has sued Coinbase in federal court, alleging years of rule-breaking by the largest US crypto platform. The 101-page complaint states that Coinbase allowed trading of unregistered securities, leading to a 16% drop in its stock to $49.11.
- The SEC's lawsuit against Coinbase aims to enforce compliance with securities laws and confiscate alleged ill-gotten gains. Additionally, on Tuesday, the SEC accused Coinbase of violating its rules through its staking service. This service allows customers to lend their crypto tokens to facilitate blockchain transactions and receive returns in exchange.
Why it matters
In a developing crackdown that may relegate digital currencies to the outskirts of the US financial system, the Securities and Exchange Commission (SEC) has filed a lawsuit against Binance, the world's largest cryptocurrency platform, for a broader range of violations. The SEC's allegations on Monday include mishandling customer funds, misleading investors and regulators, and violating securities regulations, targeting both Binance and its CEO, Changpeng Zhao. This move follows a similar action against Coinbase by the SEC.