The 101-page lawsuit accused Coinbase of allowing securities to trade on its platform, including SOL, ADA, and MATIC.
Just one day after launching a slew of charges against Binance, the U.S. Securities and Exchange Commission (SEC) has filed a 101-page lawsuit against Coinbase – America’s largest cryptocurrency exchange.
Similar to Binance, the agency alleged that Coinbase has failed to register as either a broker, national securities exchange, or clearing agency, despite serving the functions of all three.
It also accused Coinbase of violating securities laws by making assets available for trade on its exchange that passed the Howey Test – despite paying “lip service” to the desire to be legally compliant.
The agency named large-cap crypto assets including SOL, ADA, and MATIC among those securities.
“Coinbase has elevated its interest in increasing its profits over investors’ interests, and over compliance with the law and the regulatory framework that governs the securities markets,” stated the commission.
Furthermore, the SEC said Coinbase failed to register its staking-as-a-service product, thereby “depriving investors of material information about the program.” Coinbase anticipated such a lawsuit months ago, but stood by its claim that staking products are not securities.
As relief, the SEC wants Coinbase to “disgorge their ill-gotten gains and to pay prejudgment interest thereon.”
Andrew is content writer with a passion for Bitcoin. He became familiar with Bitcoin back in 2013, but began diligently studying the blockchain technology and its economic implications in 2017. Ever since, he’s believed in the network’s power to replace the current global monetary system, and provide financial freedom to billions worldwide.
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