In an authorized investigation that is starting to shake up the digital asset market, Wall Street’s top regulator is taking on some of the biggest names in cryptocurrency over their alleged violations of US securities laws.
The largest cryptocurrency exchange in the country, Coinbase, was sued by the US Securities and Exchange Commission on Tuesday for allegedly operating as an unlicensed broker.
Only 24 hours had passed since SEC filed a similar lawsuit against international rival Binance.
According to a complaint the SEC filed in federal court on Tuesday, “Coinbase has never registered with the SEC as a broker, national securities exchange, or any clearing agency; bypassing the registration system that Congress has established for our securities markets.
“All the while, Coinbase has earned billions of dollars in revenue by, among other things, collecting transaction fees from investors who Coinbase has deprived of the disclosures and protections that registration entails, leaving them vulnerable to significant risk.”
Coinbase’s stock fell 16% in premarket trading. Following the SEC’s filing of charges against Binance, the world’s largest cryptocurrency exchange, investors withdrew $790 million from the platform and its US subsidiary, according to data firm Nansen on Tuesday.
On the ethereum blockchain, Binance’s US subsidiary, Binance, observed net outflows of crypto tokens totaling $778.6 million.US, recording a $13 million net outflow, Nansen tweeted.
