SEC Cracks Down on Crypto Giants Coinbase and Binance.
Originally Published 2 years ago — by The Verge
The US Securities and Exchange Commission (SEC) has filed a lawsuit against Coinbase and its parent company, CGI, for allegedly breaking securities law by acting as an unregistered broker for its main crypto trading platform, Coinbase Prime, and the Coinbase Wallet. The SEC is also suing over Coinbase's staking-as-a-service platform. The Alabama Securities Commission has also issued a "show cause" order to Coinbase, asking the company to explain why it should not be directed to cease and desist from selling unregistered securities in Alabama. Coinbase's chief legal officer responded to the lawsuit, saying that the SEC's enforcement-only approach is hurting America's economic competitiveness and companies like Coinbase that have a demonstrated commitment to compliance.