Tag: Coinbase

US SEC Indicts Coinbase over Unregistered Exchange and Broker Platform

The new lawsuit against Coinbase is coming only a few hours after the SEC sued Binance for violation of the same US securities rules. American publicly listed crypto trading platform Coinbase Global Inc (NASDAQ: COIN) has come under the radar of the United States Securities and Exchange Commission (SEC) once again. This time around, Coinbase was indicted in a New York Federal Court earlier today for operating as an unregistered national securities exchange and broker according to the regulator. The lawsuit stated that Coinbase has been operating in this manner…

How to Build a Compliant Crypto Exchange After The SEC’s Coinbase Suit

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I am not going to bore you by quoting chapter and verse on broker-dealer registration requirements. I also won’t go into a detailed Howey analysis on many of the coins mentioned in the complaint – including Solana, ADA, Matic, Filecoin, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO. The important thing here is that the SEC is seeking, as a remedy, a permanent injunction against Coinbase from operating an unlicensed exchange. If they can get one of the tokens to stick and win at trial, they may be…

Coinbase stock plunges 20% on SEC lawsuit

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The stock of cryptocurrency exchange Coinbase plunged more than 20% at the open on June 6. At the time of publication, shares have pared some losses and are currently trading at $50.14, compared to an intra-day low of $46.43. The company’s market capitalization currently stands at $13.7 billion.  The same day, the United States Securities and Commission filed a lawsuit against Coinbase, alleging the operations of an unregistered national securities exchange, broker and clearing agency and failing to register the offer and sale of its crypto asset staking-as-a-service program. SEC Chair…

Coinbase targeted by state security regulators concurrent to SEC lawsuit

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According to a statement published by the Alabama Securities Commission on June 6, a multi-state task force comprising of state regulators from Alabama, California, Illinois, Kentucky, Maryland, New Jersey, South Caroline, Vermont, Washington, and Wisconsin have issued a Show Cause Order against cryptocurrency exchange Coinbase. The order alleges that “Coinbase violates the securities law by offering its staking rewards program accounts to Alabama residents without a registration to offer or sell these securities.” In particular, the order gives Coinbase 28 days to show cause why they should not be directed…

After Binance, SEC Sues Coinbase over Illegal Operation of Crypto Exchange

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The Securities and Exchange Commission (SEC) has charged Coinbase, the largest cryptocurrency exchange in the United States, with operating an illegal trading platform that offered unregistered crypto asset securities. The securities watchdog also accused the platform of running a digital asset staking-as-a-service programme without authorization. In a complaint filed before a US district court in New York, SEC further alleged that Coinbase combines the functions of an exchange, brokerage and clearing agency–which are separated under US laws–without registering to engage in these activities. “All the while, Coinbase has earned billions…

Coinbase, CFTC, and Others Testify in Congress Over Proposed Crypto Bill

Representatives from Coinbase, Robinhood, and the Commodity Futures Trading Commission, among others, will speak at a House Agriculture Committee hearing on digital asset regulation about the recently released draft crypto bill. United States legislators put forth a crypto bill to provide clear regulations for cryptocurrency, its users, and companies. The 162-page bill attempts to establish regulatory jurisdiction and definitions. However, it was also acknowledged that the bill would require extensive reviews. One is the House Agriculture Committee hearing on digital asset regulation today. Coinbase and the CFTC are among those…

SEC sues Coinbase in NY federal court for offering unregistered securities

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The United States Securities and Exchange Commission has filed a lawsuit against New York-based crypto exchange Coinbase for offering unregistered securities. The SEC lawsuit alleged that Coinbase has never registered as a broker, national securities exchange or clearing agency, evading the disclosure scheme for securities markets. SEC alleged that several tokens offered by the crypto exchange including  Solana (SOL),  Cardano (ADA), Polygon (MATIC) Filecoin (FIL), Sandbox (SAND), Axie Infinity (AXS), Chiliz (CHZ), FLOW, ICP, NEAR, VGX, DASH, and NEXO qualify as securities. Today we charged Coinbase, Inc. with operating its crypto asset…