US SEC Sues Coinbase, One Day After Suing Binance
The U.S. Securities and Exchange Commission (SEC) announced on Tuesday it has taken action against the cryptocurrency exchange Coinbase. This follows action taken just one day prior against the exchange Binance.
"Today we charged Coinbase, Inc. with operating its crypto asset trading platform as an unregistered national securities exchange, broker, and clearing agency and for failing to register the offer and sale of its crypto asset staking-as-a-service program."
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— gambling911 (@gambling911) June 6, 2023
The SEC alleges Coinbase has operated in this capacity since 2019 and evaded the disclosure requirements meant to protect investors.
The complaint was filed in Manhattan federal court.
The SEC also said Coinbase operated as an unregistered broker through Coinbase Prime, which routes orders to Coinbase's platform and other platforms, and Coinbase Wallet, which lets investors access liquidity outside Coinbase's platform.
"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," SEC Chair Gary Gensler tweeted.
Shares of Coinbase fell 15.9% in premarket trading aftr the lawsuit was filed. Coinbase did not immediately respond to a request for comment.
Gambling911.com would recommend to gamblers not to request payouts on Tuesday via Bitcoin or other cryptocurrencies as the price of digital currencies will likely be volatile throughout the day.
- Aaron Goldstein, Gambling911.com
