Just a day after the US Securities and Exchange Commission (SEC) sued the cryptocurrency exchange Binance, the same move was taken against Coinbase. The SEC alleges that the exchange illegally earned billions of dollars.
According to the SEC complaint, since 2019, Coinbase has made billions of dollars illegally facilitating the buying and selling of crypto assets as securities (Staking-as-a-Service). The SEC claims that Coinbase intertwines the traditional services of an exchange, broker, and clearing agency without registering any of these functions with the Commission, as required by law.
“You just can’t ignore the rules because you don’t like them or because you prefer others: the implications for investors are too great,” Gurbir S. Grewal, head of SEC enforcement.
Coinbase’s failure to register has deprived investors of significant protections, including SEC scrutiny, record keeping requirements, and safeguards against conflicts of interest. The complaint also alleges that the holding company, Coinbase Global (CGI), is the controlling entity of Coinbase and is responsible for a number of irregularities on the exchange.
Coinbase shares fell more than 19% at the open of trading after losing 10% in the previous session due to SEC allegations against Binance. The price of bitcoin has plummeted since the lawsuit against Binance and is down another 4% today.
UPDATE: Another U.S. regulator sues Binance – crypto exchange says it’s been targeted in the center of a “regulatory tug of war”
Design stylish and grammatically correct 3D models and animations with Cinema4D!
Want!
Sources: SEC, Watcher.guru, Daily Mail
