Just in: SEC sues Coinbase for operating as an unregistered broker

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on  Jun 6, 2023
Updated:  Jun 12, 2023
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2 min read
  • US SEC sues cryptocurrency exchange Coinbase for serving as an unlicensed broker.
  • SEC's move comes one day after the regulator filed a lawsuit against rival company Binance.
  • Coinbase is yet to comment on the lawsuit allegations.

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The United States SEC strikes the cryptocurrency market again, this time suing exchange Coinbase. That comes one day after the lawmakers filed a suit against Binance. The Securities & Exchange Commission alleges that Coinbase has operated as an unlicensed broker, clearing agency, and exchange.

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SEC attacks Coinbase

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The Securities & Exchange Commission named Coinbase and its parent firm CGI as the suit’s defendants. The regulators stated that the Coinbase Platform has operated as an unlicensed trading company since 2019, soliciting investors, handling user assets and funds, and charging transaction fees.

The suit alleged that Coinbase served crypto investors as an unregistered exchange, offering a marketplace for sellers and buyers to trade cryptocurrencies. Moreover, the securities lawmaker added that Coinbase operated as an illegal clearing agency – holding user assets in their company-controlled wallets and completing client transactions by crediting and debiting applicable accounts.

Earlier today, invezz.com reported that Coinbase Legal Officer Paul Grewal was to testify before the Congress over the new cryptocurrency bill on June 6. Meanwhile, the SEC attacked the exchange before updates from the Capitol Building meeting.

The latest invezz.com news reveal Coinbase CEO has responded to SEC’s lawsuit. Brian Armstrong remained confidence about challenging the regulator in court.

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