Crypto stocks fall after US SEC sues Coinbase over failure to register
Shares of cryptocurrency and blockchain-related companies fell in premarket trading on Tuesday after the industry’s biggest exchanges Coinbase Global and Binance found themselves in the crosshairs of the U.S. securities regulator.
The U.S. Securities and Exchange Commission sued Coinbase, accusing it of illegally operating without registration with the regulator. The SEC also filed a lawsuit against Binance and its CEO, Changpeng Zhao, on Monday.
In a complaint filed in Manhattan federal court on Tuesday, the SEC said Coinbase has since at least 2019 operated as an unregistered broker by handling cryptocurrency transactions, evading the disclosure requirements meant to protect investors.