SEC Charges Coinbase for Operating as an Unregistered Securities Exchange, Broker, and Clearing Agency

  • Press release


Name

SEC Charges Coinbase for Operating as an Unregistered Securities Exchange, Broker, and Clearing Agency

Types

Press release

Claims from

SEC charged Coinbase, Inc. with operating its crypto asset trading platform as an unregistered national securities exchange, broker, and clearing agency
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
SEC claims that Coinbase’s failure to register has deprived investors of significant protections, including inspection by the SEC, recordkeeping requirements, and safeguards against conflicts of interest, among others
SEC charged Coinbase for failing to register the offer and sale of its crypto asset staking-as-a-service program

Publish date

06

Month
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06

Day
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2023

Year

12

:

00

am

Publisher

SEC

Quotes from

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.”
SEC Charges Coinbase for Operating as an Unregistered Securities Exchange, Broker, and Clearing Agency
As alleged in the SEC’s complaint, Coinbase’s failure to register has deprived investors of significant protections, including inspection by the SEC, recordkeeping requirements, and safeguards against conflicts of interest, among others.
The Securities and Exchange Commission today charged Coinbase, Inc. with operating its crypto asset trading platform as an unregistered national securities exchange, broker, and clearing agency.
The SEC also charged Coinbase for failing to register the offer and sale of its crypto asset staking-as-a-service program.

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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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SEC Charges Coinbase for Operating as an Unregistered Securities Exchange, Broker, and Clearing Agency and sale of unregistered securities

Web URL

https://www.sec.gov/news/press-release/2023-102