Coinbase CEO and co-founder Brian Armstrong speaks at the Milken Institute Global Conference in Beverly Hills, California, May 2, 2022.
Patrick T. Fallon | AFP | Getty Images
SEC sues cryptocurrency exchange Coinbase In federal court in New York on Tuesday morning, the firm was charged with acting as an unregistered broker and exchange and asked to be “permanently restrained and prohibited” from continuing to do so.
The stock fell 15% in premarket trading on Tuesday. Coinbase shares fell 9% on Monday after the U.S. Securities and Exchange Commission unveiled charges against rival cryptocurrency exchange Binance and its founder Changpeng Zhao.
In its complaint, the regulator alleged that Coinbase’s flagship institutional brokerage, trading and staking program violated securities laws. The company “has flouted regulatory structures and evaded disclosure requirements under U.S. securities laws for years.”
The SEC claims that at least 13 crypto assets available to Coinbase customers are considered “crypto-asset securities” by the regulator.These assets include Solana’s sol token, Cardano’s Token and Protocol Labs’ Filecoin Token.
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