SEC claims that Coinbase commingled and unlawfully offered exchange, broker-dealer, and clearinghouse functions that deprived investors of critical protections, including rulebooks that prevent fraud and manipulation, proper disclosure, safeguards against conflicts of interest, and routine inspection by the SEC
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SEC Charges Coinbase for Operating as an Unregistered Securities Exchange, Broker, and Clearing Agency
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SEC Charges Coinbase for Operating as an Unregistered Securities Exchange, Broker, and Clearing Agency and sale of unregistered securities
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We allege that Coinbase, despite being subject to the securities laws, commingled and unlawfully offered exchange, broker-dealer, and clearinghouse functions,” said SEC Chair Gary Gensler. “In other parts of our securities markets, these functions are separate. 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. Further, as we allege, Coinbase never registered its staking-as-a-service program as required by the securities laws, again depriving investors of critical disclosure and other protections.”
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