06-07-2023, 06:17 AM
Coinbase Shares Plunge after SEC Lawsuit
<p class="MsoNormal">Cryptocurrencies
and stocks of companies related to the industry continued to fall on Tuesday
after the US securities regulator sued Coinbase, the largest cryptocurrency
<a href="https://www.financemagnates.com/terms/e/exchange/" class="terms__main-term" id="b5da6e64-2afe-421d-9b81-16404b7d59d6">exchange</a> in the country, for allegedly violating multiple federal securities laws.</p><p class="MsoNormal">Coinbase (COIN)
stock, which counts Cathie Wood’s ARK Invest, The Vanguard Group, Fidelity, and
BlackRock, among some of its top shareholders, plunged as low as 20% in
pre-market trading on Tuesday before paring some of the losses, according to TradingView.</p><p class="MsoNormal">Altcoins Lead Losses</p><p class="MsoNormal">Also affected were
<a href="https://www.financemagnates.com/terms/a/altcoins/" class="terms__secondary-term" id="8a80d92f-89ef-48f0-8368-84e1aa72964e">altcoins</a> (digital assets alternative to Bitcoin) some of which, including
Solana (SOL), Cardano (ADA), and Polygon (MATIC), were listed in the lawsuit. As of press time, SOL, ADA, and MATIC were down, 5%, 7%, and 10%,
respectively, on the weekly chart.</p><p class="MsoNormal">As reported by
Finance Magnates on Tuesday, <a href="https://www.financemagnates.com/cryptocurrency/after-binance-sec-sues-coinbase-over-illegal-operation-of-crypto-exchange/" target="_blank" rel="follow">the
SEC sued Coinbase</a> for operating an illegal trading platform and dealing
in unregistered securities. Specifically, the federal securities watchdog claims that Coinbase combined the functions of an exchange, a broker, and a clearing agency, which should have been offered separately according to the law.</p><p class="MsoNormal">"By
collapsing these functions into a single platform and failing to register with
the SEC as to any of the three functions, and not having qualified for any
applicable exemptions from registration, Coinbase has for many years defied the
regulatory structures and evaded requirements that Congress and the SEC have
constructed for the protection of the national securities markets and
investors," the lawsuit <a href="https://storage.courtlistener.com/recap/gov.uscourts.nysd.599908/gov.uscourts.nysd.599908.1.0.pdf" target="_blank" rel="follow">alleged</a>. </p><p class="MsoNormal">Additionally, the commission faults the exchange for operating a digital asset
staking-as-a-service programme without the required license or authorization. </p><p class="MsoNormal">"Coinbase had
never had a registration statement filed or in effect with the SEC for its
offers and sales of its Staking Program, thereby depriving investors of
material information about the program, undermining investors’ interests, and
violating the registration provision of the Securities Act of 1933," SEC explained in the complaint.</p><p class="MsoNormal">Binance in the Storm</p><p class="MsoNormal">Coinbase is not the
only cryptocurrency exchange at loggerheads with the SEC; its counterpart and
the top digital asset exchange, Binance, was <a href="https://www.financemagnates.com/cryptocurrency/binance-faces-withdrawal-pressure-in-wake-of-sec-lawsuit/" target="_blank" rel="follow">hit
with similar charges</a>, including allegations of comingling investors’ funds, on Monday. </p><p>Moreover, the regulator has <a href="https://www.financemagnates.com/cryptocurrency/sec-charges-binance-ceo-over-illegal-exchanges-commingling-of-client-fund/" target="_blank" rel="follow">accused Binance’s Co-Founder, Changpeng Zhao</a>, of secretly controlling Binance.US to evade regulations. Binance.US is an affiliate of the exchange in the United States and was meant to be independent of the parent company.</p><p>Citi chooses NetDania; FMA warns against imposter; <a href="https://www.financemagnates.com/forex/news-nuggets-6-june-citi-chooses-netdania-fma-warns-against-imposter/" target="_blank" rel="follow" class="">read today's news nuggets</a>.</p>
This article was written by Jared Kirui at www.financemagnates.com.
https://www.financemagnates.com//cryptoc...c-lawsuit/
<p class="MsoNormal">Cryptocurrencies
and stocks of companies related to the industry continued to fall on Tuesday
after the US securities regulator sued Coinbase, the largest cryptocurrency
<a href="https://www.financemagnates.com/terms/e/exchange/" class="terms__main-term" id="b5da6e64-2afe-421d-9b81-16404b7d59d6">exchange</a> in the country, for allegedly violating multiple federal securities laws.</p><p class="MsoNormal">Coinbase (COIN)
stock, which counts Cathie Wood’s ARK Invest, The Vanguard Group, Fidelity, and
BlackRock, among some of its top shareholders, plunged as low as 20% in
pre-market trading on Tuesday before paring some of the losses, according to TradingView.</p><p class="MsoNormal">Altcoins Lead Losses</p><p class="MsoNormal">Also affected were
<a href="https://www.financemagnates.com/terms/a/altcoins/" class="terms__secondary-term" id="8a80d92f-89ef-48f0-8368-84e1aa72964e">altcoins</a> (digital assets alternative to Bitcoin) some of which, including
Solana (SOL), Cardano (ADA), and Polygon (MATIC), were listed in the lawsuit. As of press time, SOL, ADA, and MATIC were down, 5%, 7%, and 10%,
respectively, on the weekly chart.</p><p class="MsoNormal">As reported by
Finance Magnates on Tuesday, <a href="https://www.financemagnates.com/cryptocurrency/after-binance-sec-sues-coinbase-over-illegal-operation-of-crypto-exchange/" target="_blank" rel="follow">the
SEC sued Coinbase</a> for operating an illegal trading platform and dealing
in unregistered securities. Specifically, the federal securities watchdog claims that Coinbase combined the functions of an exchange, a broker, and a clearing agency, which should have been offered separately according to the law.</p><p class="MsoNormal">"By
collapsing these functions into a single platform and failing to register with
the SEC as to any of the three functions, and not having qualified for any
applicable exemptions from registration, Coinbase has for many years defied the
regulatory structures and evaded requirements that Congress and the SEC have
constructed for the protection of the national securities markets and
investors," the lawsuit <a href="https://storage.courtlistener.com/recap/gov.uscourts.nysd.599908/gov.uscourts.nysd.599908.1.0.pdf" target="_blank" rel="follow">alleged</a>. </p><p class="MsoNormal">Additionally, the commission faults the exchange for operating a digital asset
staking-as-a-service programme without the required license or authorization. </p><p class="MsoNormal">"Coinbase had
never had a registration statement filed or in effect with the SEC for its
offers and sales of its Staking Program, thereby depriving investors of
material information about the program, undermining investors’ interests, and
violating the registration provision of the Securities Act of 1933," SEC explained in the complaint.</p><p class="MsoNormal">Binance in the Storm</p><p class="MsoNormal">Coinbase is not the
only cryptocurrency exchange at loggerheads with the SEC; its counterpart and
the top digital asset exchange, Binance, was <a href="https://www.financemagnates.com/cryptocurrency/binance-faces-withdrawal-pressure-in-wake-of-sec-lawsuit/" target="_blank" rel="follow">hit
with similar charges</a>, including allegations of comingling investors’ funds, on Monday. </p><p>Moreover, the regulator has <a href="https://www.financemagnates.com/cryptocurrency/sec-charges-binance-ceo-over-illegal-exchanges-commingling-of-client-fund/" target="_blank" rel="follow">accused Binance’s Co-Founder, Changpeng Zhao</a>, of secretly controlling Binance.US to evade regulations. Binance.US is an affiliate of the exchange in the United States and was meant to be independent of the parent company.</p><p>Citi chooses NetDania; FMA warns against imposter; <a href="https://www.financemagnates.com/forex/news-nuggets-6-june-citi-chooses-netdania-fma-warns-against-imposter/" target="_blank" rel="follow" class="">read today's news nuggets</a>.</p>
This article was written by Jared Kirui at www.financemagnates.com.
https://www.financemagnates.com//cryptoc...c-lawsuit/