US SEC Files Lawsuit Against Coinbase Following Binance Case

June 6, 23:00 (Audio) – US Securities and Exchange Commission (SEC) sues Coinbase, the largest US cryptocurrency exchange, for failing to register with regulators and for operating illegally caused This comes just one day after the SEC filed a similar lawsuit against Binance, the world’s largest cryptocurrency exchange, and its founder Zhao Changpeng.

SEC Chairman Gary Gensler has actively asserted jurisdiction over the cryptocurrency market, aiming to protect investors and increase confidence in the capital markets. He calls the cryptocurrency industry a “frontier” for investments that undermine the entire capital market.

Cryptocurrency companies, including Coinbase, argue that SEC rules are unclear and that regulators are crossing the line by claiming oversight of the industry. Coinbase’s general counsel, Paul Grewal, said the company will continue to operate as normal and remain committed to compliance.

In addition to the SEC lawsuit, Coinbase faces lawsuits from 10 US states, led by California, for alleged securities law violations.

Coinbase’s parent company, Coinbase Global, fell on news of the lawsuit, dropping 13.9% in late-morning trading.

The SEC complaint alleges that Coinbase circumvented disclosure requirements for investor protection purposes and traded at least 13 crypto assets that should have been registered as securities. Coinbase, which he founded in 2012, serves millions of customers and generates a significant portion of its revenue through cryptocurrency trading.

The lawsuit seeks civil penalties, recovery of unjust enrichment, and injunctive relief. The SEC previously warned Coinbase of potential charges in March, saying the company was fully aware that it was subject to federal securities law but chose to ignore it. rice field.

The SEC’s actions against Coinbase and Binance have prompted the cryptocurrency industry to prioritize compliance, reassess their product offerings, and explore international expansion. Legal battles between regulators and cryptocurrency exchanges are likely to have a significant impact on the future regulation and operation of the cryptocurrency market.