The U.S. Securities and Exchange Commission (SEC) has widened its focus on cryptocurrency exchanges, launching charges against Coinbase, Inc. The move follows similar actions against Binance, underscoring an escalating regulatory campaign against crypto platforms.
Key Points:
- SEC’s actions against Coinbase, following charges against Binance, highlight an intensifying clampdown on crypto exchanges.
- The regulator alleges Coinbase operated unlawfully, not registering as an exchange, broker, or clearing agency.
- SEC did not press charges against Coinbase executives.
- 13 cryptocurrencies, offered on Coinbase, have been classified as securities.
- The repercussions could reshape the crypto industry, compelling exchanges to adhere to more stringent regulations.
SEC Charges Coinbase in Continued Crypto Exchange Crackdown
The SEC alleges that Coinbase, a major cryptocurrency exchange, has unlawfully operated its platform without proper registration. In addition, the regulator has charged the company for offering and selling securities related to its staking-as-a-service program, without prior registration. The allegations come directly from SEC Chair Gary Gensler and Gurbir S. Grewal, director of the SEC’s Division of Enforcement.
This action underscores a notable expansion in the regulatory scope, as 13 cryptocurrencies offered on Coinbase were named as securities. These include SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO.
Coinbase’s Response
In response, Paul Grewal, chief legal officer at Coinbase, lamented the SEC’s reliance on enforcement in the absence of clear regulations for the digital asset industry. He advocated for legislation allowing for fair rules to be developed and applied equally.
The SEC’s actions come amidst an escalating regulatory campaign against crypto platforms, following similar charges against Binance and its CEO, Changpeng Zhao.
