The U.S. Securities and Exchange Commission on Tuesday sued Coinbase, accusing the largest U.S. cryptocurrency exchange of operating illegally without having first registered with the regulator.
Tuesday’s lawsuit came one day after the SEC sued Binance, the world’s largest cryptocurrency exchange, and its founder Changpeng Zhao.
Both cases are part of SEC Chair Gary Gensler’s push to assert jurisdiction over crypto and offer better protection to investors who trade virtual currencies. “Coinbase’s alleged failures deprive investors of critical protections, including rulebooks that prevent fraud and manipulation, proper disclosure, safeguards against conflicts of interest, and routine inspection,” Gensler said in a tweet.
Coinbase’s alleged failures deprive investors of critical protections, including rulebooks that prevent fraud and manipulation, proper disclosure, safeguards against conflicts of interest, and routine inspection by the SEC.