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Coinbase Faces Legal Action from US SEC for Alleged Market Rule Violations

Aljazeera | Jun 5, 2-23

Coinbase  - Coinbase Faces Legal Action from US SEC for Alleged Market Rule Violations

The United States Securities and Exchange Commission (SEC) has sued Coinbase, accusing the largest US cryptocurrency platform of operating illegally because it failed to register as an exchange.

  • Coinbase, the largest US crypto platform, is under scrutiny for alleged security law breaches related to its staking rewards program. The SEC claims that Coinbase has been acting as an intermediary for cryptocurrency transactions since at least 2019, evading necessary investor protection disclosures. The company is also charged with trading at least 13 crypto assets deemed securities, which should have been registered, including Solana, Cardano, and Polygon.
    • The lawsuit is part of SEC Chairman Gary Gensler's push to increase oversight of the rapidly growing crypto industry, which he has referred to as a "wild West" of investing.
    • The legal actions against Coinbase and Binance signal the SEC's intent to enforce existing market regulations in the cryptocurrency sector, an industry that has often been accused of regulatory ambiguity.

See:  Breaking: SEC Files Charges Against Binance for Mishandling Funds and Deceiving Regulators

  • Market Impact: Shares in Coinbase Global Inc dropped by as much as 20.9% following the announcement of the lawsuit, with customers reportedly withdrawing over $57m shortly after the SEC filing.

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NCFA Jan 2018 resize - Coinbase Faces Legal Action from US SEC for Alleged Market Rule ViolationsThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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