TL;DR
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The SEC has filed a lawsuit alleging that Coinbase failed to register as an exchange, clearing house, and broker despite investors providing these services.
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Plus! The SEC also alleges that Coinbase has been listing and selling unregistered securities through its staking service.
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The hypocrisy is: the SEC approved everything they now object to when Coinbase went public in April 2021.
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In the filing, the SEC said Coinbase must be “permanently restrained” and no longer able to conduct business in the United States.
Full story
Oh damn! Remember when we wrote yesterday about the SEC coming to Binance due to the sale of unregistered securities?
Well, today they are doing the same with Coinbase.
But there’s a heightened scandal here…
Before we get into it…let’s see who’s claiming what.
The SEC’s lawsuit alleges that Coinbase failed to register as an exchange, clearing house, and broker despite investors providing these services.
And if that wasn’t enough financial/legal jargon for you…
The SEC also alleges that Coinbase has been listing and selling unregistered securities through its staking service.
(Think of “securities” such as stocks – an investment in a company with the expectation of a profit).
However, here’s the thing:
Everything the SEC agrees on, Coinbase did when it went public.
Why is that important? Because private companies need SEC approval to go public and issue stock on the open market.
The hypocrisy is: the SEC approved everything they now object to when Coinbase went public in April 2021.
And oh, it gets worse…
This is not an attempt to slap a few wrists.
In the filing, the SEC said Coinbase must be “permanently restrained” and no longer able to conduct business in the United States.
So where to from here?
Our Magic 8 Ball says, “A long legal battle.”
(It’s a custom 8 Ball, don’t @ us).