A day after suing crypto exchange Binance, the US Securities and Exchange Commission (SEC) accused Coinbase of operating its crypto asset trading platform as an unregistered national securities exchange, broker and clearing agency on Wednesday.
According to the SEC’s complaint, Coinbase has illegally facilitated the buying and selling of crypto asset securities worth billions of dollars. The SEC also accused Coinbase of failing to register the offer and sale of its crypto asset staking-as-a-service program.
What SEC Chairman Gary Gensler Said
We allege that Coinbase, despite being subject to securities laws, mixed and unlawfully offered exchange, broker-dealer and clearinghouse functions, said SEC Chairman Gary Gensler. After this news, there is a lot of movement in the American crypto market. In the 101-page report, the SEC has made several allegations, and based on these serious allegations, it can be said that this cryptocurrency exchange has violated several regulatory laws.
Signs From The Coinbase Failure
According to the complaint, Coinbase’s alleged failure deprives investors of important protections, including rulebooks that prevent fraud and manipulation and enable proper disclosure, safeguards against conflicts of interest, and regular oversight by the SEC.
SEC Made These Allegations
The SEC it is alleged that since 2019 Coinbase has engaged in unregistered security offerings through its staking-as-a-service program, which allows customers to profit from certain blockchain and proof-of-stake mechanisms of Coinbase’s efforts. Allows.
Coinbase Shares Showed A Sharp Decline In The US Market
After this news came to the fore, there was a tremendous decline in the shares of Coinbase in the US markets. These shares were trading at around $52 after falling about 10 per cent, and these levels were seen as of 10 pm on Tuesday (Indian time).
