Just a day after the Securities and Exchange Commission targeted Binance with a lawsuit, the SEC has made its next move, In one of the most recent updates, the SEC has sued crypto exchange Coinbase.
The commission stated that the exchange has never registered with the SEC as a broker. Additionally, the lawsuit also claims that the exchange evaded the disclosure regime that has been put in place for the securities market.
The SEC has also stated that Coinbase made billions of dollars unlawfully by facilitating the buying and selling of crypto asset securities.
JUST IN: 🇺🇸 SEC says #Coinbase made "billions of dollars unlawfully facilitating the buying and selling of crypto asset securities."— Watcher.Guru (@WatcherGuru) June 6, 2023
Coinbase made billions of dollars unlawfully, says SEC
The details from the SEC’s complaint states that the exchange has unlawfully facilitated the buying and selling of crypto asset securities. The SEC states that Coinbase combines the conventional services of an exchange, broker, and clearing agency, but it has not registered any of these functions with the Commission as mandated by law.
The SEC mentioned in its press release that: “Coinbase’s failure to register has deprived investors of significant protections, including inspection by the SEC, recordkeeping requirements, and safeguards against conflicts of interest, among others.”
Additionally, the lawsuit mentioned that Coinbase has been engaging in an unregistered securities offering through its staking-as-a-service program. The back-to-back actions from the SEC has evidently portrayed that the SEC is going against the notable crypto players one-by-one.