{"id":18892,"date":"2023-06-06T10:22:20","date_gmt":"2023-06-06T14:22:20","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/sec-charges-coinbase-alleges-crypto-trading-platform-operated-as-unregistered-exchange-since-2019\/"},"modified":"2023-06-06T10:22:21","modified_gmt":"2023-06-06T14:22:21","slug":"sec-charges-coinbase-alleges-crypto-trading-platform-operated-as-unregistered-exchange-since-2019","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=18892","title":{"rendered":"SEC Charges Coinbase\u2014Alleges Crypto Trading Platform Operated As Unregistered Exchange Since 2019"},"content":{"rendered":"<div>\n<h2 class=\"topline-heading\">Topline<\/h2>\n<p>Just one day after levying charges against the world\u2019s largest cryptocurrency exchange, the Securities and Exchange Commission filed suit against cryptocurrency giant Coinbase on Tuesday, alleging the popular U.S. trading platform has been operating an unregistered broker since at least 2019.<\/p>\n<h2>Key Facts<\/h2>\n<div class=\"key-facts\">\n<div class=\"key-facts-element\">\n<p>In a statement Tuesday, the SEC said it has charged Coinbase with operating its crypto trading platform as an unregistered broker and for failing to register the offer and sale of its staking-as-a-service program, which allows investors to earn returns through the firm&#8217;s work in verifying and securing transactions on the blockchain.<\/p>\n<\/p><\/div>\n<div class=\"key-facts-element\">\n<p>The complaint, filed in U.S. District Court for the Southern District of New York, further alleged Coinbase made &#8220;billions of dollars unlawfully,&#8221; acting as an unregistered broker by providing a marketplace for securities and effecting transactions for Coinbase customers.<\/p>\n<\/p><\/div>\n<div class=\"key-facts-element\">\n<p>Coinbase shares cratered more than 15% in pre-market trading to less than $49 immediately after the suit was unveiled.<\/p>\n<\/p><\/div>\n<div class=\"key-facts-element\">\n<p>In a statement, SEC Chair Gary Gensler said Coinbase&#8217;s alleged failures &#8220;deprive investors of critical protections&#8221; that help prevent fraud and manipulation.<\/p>\n<p><fbs-ad position=\"inread\" progressive=\"\" ad-id=\"article-0-inread\" aria-hidden=\"true\" role=\"presentation\"><\/fbs-ad>\n <\/div>\n<div class=\"key-facts-element\">\n<p>Coinbase Chief Legal Officer Paul Grewal hit back at the allegations on Tuesday morning, saying the SEC&#8217;s \u201creliance on an enforcement-only approach in the absence of clear rules\u201d for the crypto industry is \u201churting America\u2019s economic competitiveness and companies like Coinbase that have a demonstrated commitment to compliance.\u201d<\/p>\n<\/p><\/div>\n<\/div>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">Tangent<\/h2>\n<p>The suit comes one day after the SEC levied 13 charges against Binance, the world&#8217;s largest crypto exchange. In its complaint, the agency alleged the company has shown \u201cblatant disregard of the federal securities laws\u201d and that Binance and Changpeng Zhao, its CEO, have \u201cenriched themselves by billions of U.S. dollars while placing investors\u2019 assets at significant risk.\u201d<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">What To Watch For<\/h2>\n<p>In his statement, Grewal said Coinbase will \u201ccontinue to operate [its] business as usual,\u201d until officials create legislation that \u201callows fair rules for the road to be developed transparently and applied equally.\u201d<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">Big Number<\/h2>\n<p>$1.3 billion. That&#8217;s the trading volume Coinbase has facilitated over the past 24 hours alone\u2014making it the second-busiest crypto exchange, according to CoinMarketCap. Over the same period, Binance&#8217;s trading volume is roughly $12 billion.<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">Key Background<\/h2>\n<p>Coinbase debuted on the public market in April 2021 after a watershed year for cryptocurrencies, but the firm has had a rocky ride ever since. Shares have cratered more than 80% from their peak that year, and the price of bitcoin is still down about 60% from its own high. Over the past year, the firm has laid off more than 2,000 employees. \u201cWe grew too quickly,\u201d CEO Brian Armstrong said after the first round of layoffs last June, later saying in January he believed \u201crecent events\u201d surrounding \u201cunscrupulous actors\u201d in the industry would lead to more \u201cregulatory clarity.\u201d The charges against Binance and Coinbase have further rocked the crypto market, pushing the price of bitcoin down about 4% to $25,500\u2014the lowest level in nearly three months.<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\"><\/h2>\n<p>SEC Charges Binance With Dodging Regulation While Piling Up Billions Of Dollars <em>(Forbes)<\/em><\/p>\n<p>Crypto Prices Plunge As Sector Grapples With Fallout From SEC\u2019s Binance Lawsuit <em>(Forbes)<\/em><\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.forbes.com\/sites\/jonathanponciano\/2023\/06\/06\/sec-charges-coinbase-alleges-crypto-trading-platform-operated-as-unregistered-exchange-since-2019\/\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Topline Just one day after levying charges against the world\u2019s largest cryptocurrency exchange, the Securities and Exchange Commission filed suit against cryptocurrency giant Coinbase on Tuesday, alleging the popular U.S. trading platform has been operating an unregistered broker since at least 2019. Key Facts In a statement Tuesday, the SEC said it has charged Coinbase [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":18871,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-18892","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-markets","tag-featured"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>SEC Charges Coinbase\u2014Alleges Crypto Trading Platform Operated As Unregistered Exchange Since 2019 | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Topline Just one day after levying charges against the world\u2019s largest cryptocurrency exchange, the Securities and Exchange Commission filed suit against\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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