TL;DR
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The SEC filed a lawsuit claiming Coinbase failed to register as an exchange, clearing house, and broker despite providing investors these services.
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Plus! The SEC is also alleging that Coinbase offered and sold unregistered securities via its staking service.
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The hypocrisy being: the SEC gave its tick of approval to everything they’re now taking issue with, when Coinbase went public back in April of 2021.
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In the filing, the SEC said that Coinbase should be “permanently restrained and enjoined” and no longer able to do business in the United States.
Full Story
Oh damn! Remember yesterday when we wrote about the SEC coming at Binance for selling unregistered securities?
Well, today they’re doing the same to Coinbase.
But there’s heightened scandal here…
Before we get into it…let’s go over who’s alleging what.
The SEC’s lawsuit claims Coinbase failed to register as an exchange, clearing house, and broker despite providing investors these services.
And if that wasn’t enough financial/legal jargon for you…
The SEC is also alleging that Coinbase offered and sold unregistered securities via its staking service.
(Think of ‘securities’ like stocks – an investment in a company with the expectation of profit).
Here’s the thing though:
Everything the SEC is taking issue with, Coinbase was already doing when it went public.
Why does that matter? Because private companies need the approval of the SEC to go public and issue shares on the open market.
The hypocrisy being: the SEC gave its tick of approval to everything they’re now taking issue with, when Coinbase went public back in April of 2021.
And ah, it gets worse…
This ain’t some attempt to slap a few wrists.
In the filing, the SEC said that Coinbase should be “permanently restrained and enjoined” and no longer able to do business in the United States.
So where to from here?
Our Magic 8 Ball is saying: “A long and drawn out legal battle.”
(It’s a custom made 8 Ball, don’t @ us).
