US State regulators support SEC in the suit against Coinbase
Coinbase exchange is now under huge legal hurdles, as the state regulators filed amicus briefs to support the federal agency to support the charges against the exchange.
Coinbase is a US-based Nasdaq listed Crypto exchange. In 2021, this exchange went public & with that attracted a very big number of institutional crypto investors. In the first week of June of this year, the United States Securities and Exchange Commission (SEC) sued Coinbase over providing unregistered securities offerings & running an unregistered national securities exchange.
Latest reports confirmed that state regulators jumped to support the SEC’s charges against the Coinbase exchange.
Reportedly the state regulators filed an amicus brief to provide evidence & support the SEC’s allegations that Coinbase violated securities laws, as the company provided unregistered securities offerings in the US jurisdiction.
Alongside this amicus brief, the financial regulators from states like Alabama, California, and New Jersey initiated similar kinds of enforcement action against Coinbase.
In short, the situation for the Coinbase exchange to run the services will face high regulatory heat and Coinbase may shut down its services partially, until the final outcome of the whole case.
Some reports claimed that more amicus briefs will come in the future by the Crypto companies & crypto proponents to support the Coinbase exchange against the SEC’s charges because it’s a time to unite against the unfair enforcement actions.
It is worth it to note that Coinbase executives already disclosed that they tried to talk to the SEC body to get clarity on the financial rules over the nature of crypto assets but they failed to respond every time. Once in the past, Coinbase CEO Brian Armstrong raised a very strong question against the SEC and asked if Coinbase was providing unregistered securities offerings & also was an unregistered national securities exchange then why the SEC agency green signalled the Coinbase exchange to go public in 2021.
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