The Securities and Exchange Commission filed a lawsuit against cryptocurrency exchange Coinbase Global (COIN) as the regulator turns up its pressure on the crypto world.
The SEC alleges Coinbase, the largest crypto exchange in the US, violated securities laws by acting as an exchange, a broker and a clearing agency without registering with the agency. It also offered and sold securities without registering its offers and sales, the SEC said.
The US lawsuit filed in the Southern District of New York came a day after the SEC sued the world's largest crypto exchange, Binance, for violating securities laws, mishandling customer funds and misleading investors. Ten states, led by California, also sued Coinbase for allegedly violating state securities laws.
Coinbase's chief legal officer Paul Grewal, appearing before a House Agriculture Committee Tuesday to discuss how the crypto industry could be regulated, said "it's disappointing but not surprising that the SEC has decided to bring legal action against Coinbase today."
He and Coinbase CEO Brian Armstrong in separate statements confronted the SEC, arguing that the agency was being overly aggressive without establishing clear rules for their industry.
"The SEC has taken a regulation by enforcement approach that is harming America," Armstrong said on Twitter. "So if we need to avail ourselves of the courts to get clarity, so be it."
Coinbase stock fell 12% Tuesday, but other cryptocurrency assets rebounded over the course of the day. Bitcoin rose to $26,700, for a 24-hour rise of 4.3%, and the total market capitalization for crypto assets was up 3%.
finance.yahoo.com
The SEC alleges Coinbase, the largest crypto exchange in the US, violated securities laws by acting as an exchange, a broker and a clearing agency without registering with the agency. It also offered and sold securities without registering its offers and sales, the SEC said.
The US lawsuit filed in the Southern District of New York came a day after the SEC sued the world's largest crypto exchange, Binance, for violating securities laws, mishandling customer funds and misleading investors. Ten states, led by California, also sued Coinbase for allegedly violating state securities laws.
Coinbase's chief legal officer Paul Grewal, appearing before a House Agriculture Committee Tuesday to discuss how the crypto industry could be regulated, said "it's disappointing but not surprising that the SEC has decided to bring legal action against Coinbase today."
He and Coinbase CEO Brian Armstrong in separate statements confronted the SEC, arguing that the agency was being overly aggressive without establishing clear rules for their industry.
"The SEC has taken a regulation by enforcement approach that is harming America," Armstrong said on Twitter. "So if we need to avail ourselves of the courts to get clarity, so be it."
Coinbase stock fell 12% Tuesday, but other cryptocurrency assets rebounded over the course of the day. Bitcoin rose to $26,700, for a 24-hour rise of 4.3%, and the total market capitalization for crypto assets was up 3%.
SEC sues Coinbase as pressure on crypto world rises
The new lawsuit from the SEC is the latest of several high-profile clashes between US regulators and the crypto world.
