It marks the second straight day the U.S. regulator has taken action against a large crypto exchange.
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The SEC’s suit alleges Coinbase’s prime brokerage, exchange and staking programs violate securities laws and that 13 assets listed on its platform are considered crypto asset securities, per its complaint.
“The Coinbase Platform merges three functions that are typically separated in traditional securities markets—those of brokers, exchanges, and clearing agencies,” the complaint reads. “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.”
The complaint also alleges that Coinbase “has for years defied the regulatory structures and evaded the disclosure requirements” of U.S. securities law.
A busy two days
For years, crypto investors and enthusiasts have wanted clarity from the SEC about regulations around the industry. The new charges against Coinbase may provide some of that.
The new complaint against Coinbase comes just a day after the SEC filed charges alleging Zhao and Binance controlled customers’ assets on the platform and commingled or diverted billions of dollars of those assets as they desired, including to Sigma Chain, a European business Zhao owned and controlled.
The SEC also alleges the Binance.US exchange — which was said to be its own independent exchange — was actually controlled by Zhao and Binance.
- SEC Files 13 Charges Against Binance, Founder Changpeng Zhao And Related Entities
- Mergers & Money: Security or Commodity? Crypto Would Just Like To Know
Illustration: Dom Guzman
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