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Crypto exchange Coinbase sinks as SEC sues for breaking U.S. Securities rules

AuthorSenad KaraahmetovicCryptocurrency
Published Jun 06, 2023 08:48AM ET
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© Reuters Crypto exchange Coinbase (COIN) sinks as SEC sues for breaking US Securities rules
 
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Shares in cryptocurrency exchange Coinbase (NASDAQ:COIN) fell sharply in early Tuesday trading after the company was sued by the Securities and Exchange Commission (SEC) for an alleged breach of U.S. securities rules.

The SEC sued Coinbase in federal court today.

“The Coinbase Platform merges three functions that are typically separated in traditional securities markets—those of brokers, exchanges, and clearing agencies. Yet, Coinbase has never registered with the SEC as a broker, national securities exchange, or clearing agency, thus evading the disclosure regime that Congress has established for our securities markets,” it is said in the lawsuit.

The lawsuit also adds that Coinbase has acted as “an unregistered broker” since at least 2019.

The exchange is accused of making billions of dollars “unlawfully facilitating the buying and selling of crypto asset securities.”

“We allege that Coinbase, despite being subject to the securities laws, commingled and unlawfully offered exchange, broker-dealer, and clearinghouse functions,” said SEC Chair Gary Gensler in a press release.

“In other parts of our securities markets, these functions are separate.”

Coinbase shares fell 14.5% in pre-market Tuesday. The stock was down 9% yesterday after SEC sued Binance.

Mizuho analysts said today that the Binance lawsuit includes language that could place a third of rival Coinbase's sales at risk.

Bitcoin is down 0.8% on the day.

Crypto exchange Coinbase sinks as SEC sues for breaking U.S. Securities rules
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Comments (12)
Francis Lannan
Francis Lannan Jun 06, 2023 9:03PM ET
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Block User
Hey Gensler!, while you're at it, why don't you shoot down the stock market too and you'll have everything you ever wanted and nobody else in the whole world will make a penny from anything, because of you. One tiny man can't shoot down the whole world, this guy'll end up cutting his own throat is what he's going to do. RIP Gary Gensler
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Jay Garrelts
Jay Garrelts Jun 06, 2023 1:05PM ET
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My farts in a jar currency doesn’t need the internet just my arss and some jars bam
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dylan mulvaney
dylan mulvaney Jun 06, 2023 11:06AM ET
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The SEC is claiming Coinbase has been operating illegally since 2019, but the SEC allowed Coinbase to IPO in 2021. Best of luck with the one in court SEC lmao. The SEC is just financially incentivized to do this, no other reason. Meanwhile the US government is $31 trillion in debt and printed over half the entire money supply over the past few years.
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Cytus Merados
Cytus Merados Jun 06, 2023 10:54AM ET
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anything that poses a threat to petrodollar is a security threat to US. saddam, gaddafi, xi, pepe
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Tre Hsi
Tre Hsi Jun 06, 2023 10:54AM ET
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Gaddafi?  the only threat he posed was to the cosmetic surgery industry
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James Hilliard
James Hilliard Jun 06, 2023 10:27AM ET
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Troops and pigs love enforcing tax slavery. It’s how they eat.
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Chris Brooks
Chris Brooks Jun 06, 2023 10:26AM ET
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SEC attacks crypto exchanges with no laws to base it off of yet. Central exchanges in the US are at risk of being tied up in lawsuits while the FED keeps preparing to roll out CBDCs. problem, reaction, solution. catching on yet!!!!
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George Sampoang
George Sampoang Jun 06, 2023 9:30AM ET
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Schwab and Fidelity opening an exchange, hmmmm
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Randall Paul
Randall Paul Jun 06, 2023 9:27AM ET
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notice how the sec is attack8ng all crypto related business all of a sudden. interesting. are they shielding the big banks? or are they biased on who controls the space eventually.
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jason xx
jason xx Jun 06, 2023 9:27AM ET
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Exactly it is about who controls and profits in the space. They don't want the chinamen to be making all the money and having all the power just like when they illegalized gambling
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Jan Buyle
Jan Buyle Jun 06, 2023 9:27AM ET
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Yes, and with good reasons! Crypto businesses are run by 100% crooks...
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Mohamed Ahmed
Mohamed Ahmed Jun 06, 2023 9:24AM ET
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it's the time to use Bitcoin beer2beer and stop trading in any exchange
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Mike Holden
Mike Holden Jun 06, 2023 9:20AM ET
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"The exchange is accused of making billions of dollars “unlawfully facilitating the buying and selling of crypto asset securities.”" without giving US a cut
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Tre Hsi
Tre Hsi Jun 06, 2023 9:20AM ET
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nobody forced Coinbase to list on NASDAQ.....
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