Through the lawsuit, the US SEC alleged that Coinbase provides unregistered securities offerings in the US jurisdiction.
Coinbase is a top-ranked crypto firm in the US and this exchange is publicly traded on the Nasdaq exchange. On 14 April 2021, Coinbase became a public crypto firm. This exchange provides services to retail as well as Institutional investors. Even some US government agencies use blockchain tools, developed by the Coinbase blockchain team.
On 6 June 2023, The United States Securities and Exchange Commission (SEC) announced that it sued the Coinbase exchange over operating crypto services as an unregistered national securities exchange.
The SEC’s lawsuit against Coinbase also targeted Coinbase’s crypto-staking services as a violation of federal securities laws.
It is worth it to note that Coinbase is holding all regulatory approvals, which is required to operate a crypto trade platform. In the 45 US states, Coinbase holds a money transmission licence.
In this suit, 10 US states are in support of the SEC body. Now Coinbase has nearly 28 days to provide evidence to explain why states’ regulators should not issue a cease-and-desist order against its Crypto services, which violated the federal securities laws as the SEC body claims.
COIN shares price action
The current trade price of COIN shares is $51.60. The trade price of COIN plunged by nearly 12% within 24 hours because of this negative news.
SEC vs Binance
Just a couple of days ago, the SEC body sued Binance, Binance’s American subsidiary BinanceUS, and Binance CEO Changpeng Zhao (CZ).
Because of these back-to-back suits against Crypto firms, the majority of the crypto traders are in fear & shifting their trade activities to decentralized crypto trade platforms like Uniswap.