SEC sues Coinbase for breaking US securities rules

The claim declared that coinbases staking program includes five stackable crypto properties, making the staking program an investment contract and therefore a security. Source: GoogleThe SEC lawsuit against Coinbase comes simply a day after the securities regulator took legal action against Binance for breaking securities law and comingling consumers funds. While Binance was charged with 13 counts of infractions under various securities laws, the allegations versus Coinbase have puzzled numerous in the crypto industry primarily because Coinbase is a publicly listed company, Binance CEO Changpeng Zhao also took to Twitter to react to the Coinbase suit and took a dig at the SEC.If you have to pick a fight with everyone, perhaps you are the one at fault.

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The United States Securities and Exchange Commission has submitted a lawsuit versus New York-based crypto exchange Coinbase for offering unregistered securities.The SEC suit declared that Coinbase has actually never signed up as a broker, nationwide securities exchange or cleaning firm, evading the disclosure scheme for securities markets. SEC declared that a number of tokens used by the crypto exchange consisting of Solana (SOL), Cardano (ADA), Polygon (MATIC) Filecoin (FIL), Sandbox (SAND), Axie Infinity (AXS), Chiliz (CHZ), FLOW, ICP, NEAR, VGX, DASH, and NEXO certify as securities.Today we charged Coinbase, Inc. with operating its crypto asset trading platform as an unregistered nationwide securities exchange, broker, and clearing agency and for failing to sign up the deal and sale of its crypto possession staking-as-a-service program.https:// t.co/ XPG2gDkxtV pic.twitter.com/hCdVMw8B2v— U.S. Securities and Exchange Commission (@SECGov) June 6, 2023

Lots of in the crypto community questioned how Coinbase was permitted to go public in 2021 when it has actually been running as an unregistered security broker. One crypto influencer that goes by the Twitter name of The Wolf said, SEC taking legal action against Coinbase could cut some slack for Binance as well.So in SECs grievance vs Coinbase, it states that theyve been acting as an unregistered broker since 2019.

Cointelegraph connected to Coinbase to get the comments on the current accusations in the claim however didnt get a response at press time.