The U.S. Securities and Exchange Commission (SEC) has filed a 101-page lawsuit against Coinbase, the largest cryptocurrency exchange in America, just one day after filing charges against Binance.
- Similar to Binance, the SEC alleged that Coinbase has not registered as a broker, national securities exchange, or clearing agency, despite performing the functions of all three.
- The commission also accused Coinbase of violating securities laws by allowing the trade of assets on its exchange that passed the Howey Test, while paying only lip service to legal compliance.
- The SEC named SOL, ADA, and MATIC among the large-cap crypto assets that were considered securities.
- “Coinbase has prioritized its profits over compliance with the law and the regulatory framework that governs the securities markets, as well as the interests of its investors,” stated the commission.
- Furthermore, the SEC claimed that Coinbase failed to register its staking-as-a-service product, which prevented investors from receiving material information about the program. Although Coinbase anticipated this lawsuit months ago, it still maintained that staking products are not securities.
- The SEC is seeking disgorgement of ill-gotten gains and prejudgment interest from Coinbase as relief.
