Cryptocurrency: US regulator sues Coinbase, know what the allegations are

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Coinbase: A day after suing crypto exchange Binance, the US Securities and Exchange Commission (SEC) on Wednesday accused Coinbase of operating its crypto asset trading platform as an unregistered national securities exchange, broker and clearing agency. According to the SEC’s complaint, Coinbase has illegally facilitated the buying and selling of crypto asset securities worth billions of dollars. The SEC also accused Coinbase of failing to register the offer and sale of its crypto asset staking-as-a-service program.

What SEC Chairman Gary Gensler Said

We allege that Coinbase, despite being subject to securities laws, mixed and unlawfully offered exchange, broker-dealer and clearinghouse functions, said SEC Chairman Gary Gensler. After these news, there is a lot of movement in the American crypto market. In the 101-page report, the SEC has made several allegations and on the basis of these serious allegations, it can be said that this cryptocurrency exchange has violated several regulatory laws.

Signs from the Coinbase failure

According to the complaint, Coinbase’s alleged failure deprives investors of important protections, including rulebooks that prevent fraud and manipulation and enable proper disclosure, safeguards against conflicts of interest, and regular oversight by the SEC.

SEC made these allegations

The SEC alleged that since 2019 Coinbase engaged in an unregistered securities offering through its staking-as-a-service program, which allows customers to profit from certain blockchain and proof-of-stake mechanisms of Coinbase’s efforts. allows.

Coinbase shares showed a sharp decline in the US market

After these news came to the fore, there was a tremendous decline in the shares of Coinbase in the US markets. These shares were trading at a level of around $52 after falling about 10 per cent and these levels were seen as of 10 pm on Tuesday night (Indian time).

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