The largest American cryptocurrency exchange Coinbase has gone the way of Binance, having received a lawsuit from the US Securities and Exchange Commission (SEC).
According to the lawsuit, Coinbase has been operating in the country since 2019 as an unregistered broker and trades in cryptocurrencies, which are securities. The authors of the lawsuit claim that Coinbase “has never registered as a broker, national securities exchange or clearing agency”, thereby avoiding disclosure of information to the securities markets.
The regulator has named assets such as SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO as securities.
Earlier, the SEC filed a lawsuit in the District of Columbia court, publicly stating on Monday, June 5, that the Binance administration and its CEO, Changpeng Zhao, failed to restrict access to their trading platform to US clients, and also “misrepresented critical information, thereby misleading investors about their means of controlling the market.”
Recently, Coinbase CEO Brian Armstrong said that the negative stance of US regulators towards cryptocurrencies only plays into the hands of China and other countries. Armstrong has often criticized the SEC for fines and bans on crypto companies.
