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US SEC Files a Lawsuit Against Coinbase, Day After Suing Binance

AA News - Andrew Throuvalas 2023-06-06 21:00

Just one day after launching a slew of charges against Binance, the U.S. Securities and Exchange Commission (SEC) has filed a 101-page lawsuit against Coinbase – America’s largest cryptocurrency exchange. 

  • Similar to Binance, the agency alleged that Coinbase has failed to register as either a  broker, national securities exchange, or clearing agency, despite serving the functions of all three. 
  • It also accused Coinbase of violating securities laws by making assets available for trade on its exchange that passed the Howey Test – despite paying “lip service” to the desire to be legally compliant. 
  • The agency named large-cap crypto assets including SOL, ADA, and MATIC among those securities. 
  • “Coinbase has elevated its interest in increasing its profits over investors’ interests, and over compliance with the law and the regulatory framework that governs the securities markets,” stated the commission.
  • Furthermore, the SEC said Coinbase failed to register its staking-as-a-service product, thereby “depriving investors of material information about the program.” Coinbase anticipated such a lawsuit months ago, but stood by its claim that staking products are not securities. 
  • As relief, the SEC wants Coinbase to “disgorge their ill-gotten gains and to pay prejudgment interest thereon.”

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