SEC sues US leading crypto platform Coinbase for violating securities rules; details here
1 min read 06 Jun 2023, 06:40 PM ISTThe SEC has sued Coinbase, alleging that the cryptocurrency exchange broke its rule by allowing users to trade unregistered securities. The regulator claims that Coinbase's staking service violated its rule.
PremiumLeading US cryptocurrency platform, Coinbase Global Inc. is sued by the Securities and Exchange Commission (SEC) in a federal court hearing on Tuesday in New York. Allegations are that the crypto firm broke the regulator's rule by allowing its users trade numerous crypto tokens which were unregistered securities.
A spokesperson for Coinbase did not immediately reply to a request for comment, reported Bloomberg.
Further, as per the Bloomberg report, in July, Coinbase was under SEC investigation. On March 23, the company said it had received a warning SEC’s Binance Lawsuit Strikes at Heart of Ailing Crypto Sector notice from the regulator about a potential coming enforcement action.
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In the federal court, the SEC alleged that Coinbase used its “staking" service that lets customer turn over their crypto tokens to facilitate transactions on a blockchain -- which further then pays a return to these users. This is in violation of SEC's rule.
