By SIMA Linwei
The US Securities and Exchange Commission (SEC) has charged Coinbase, the largest cryptocurrency exchange in the country, with violating federal securities laws. The SEC accuses Coinbase of operating as an unregistered securities exchange, broker and clearing agency.
The commission further alleges that Coinbase failed to register its cryptocurrency staking program. According to the SEC, Coinbase engaged in activities typically seen at regulated venues but hadn’t been registered.
The lawsuit names Coinbase and Coinbase Global as defendants. Neither founder and CEO Brian Armstrong nor any other executives were named in the assertions. Coinbase’s stock dived following the accusation.
The SEC’s action comes swiftly after similar treatment of Binance and the industry is not best pleased.
The SEC’s action, along with statements by Gary Gensler, SEC chairman, has started a discussion about the need for regulation and the future of the cryptocurrency industry.
In response to the lawsuit, Armstrong focused on whether certain assets were securities or not. Paul Grewal, Coinbase’s chief legal officer, called for legislation, concerned that the SEC’s approach was not transparent or fair.
The inquisition has already seen millions flowing out of Coinbase, but Bitcoin’s price actually increased, reclaiming a previous drop caused by the Binance lawsuit.
