US SEC sues Coinbase, one day after suing Binance

The US Securities and Exchange Commission on Tuesday sued Coinbase Inc, the largest US crypto asset trading platform, accusing it of illegally operating without having first registered with the regulator.

In a complaint filed in Manhattan federal court, 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.

The SEC also said Coinbase operated as an unregistered broker through Coinbase Prime, which routes orders to Coinbase’s platform and other platforms, and Coinbase Wallet, which lets investors access liquidity outside Coinbase’s platform.