Coinbase Sued by SEC for violating U.S. securities laws

On the evening of June 6, Nigeria time, the U.S. Securities and Exchange Commission (SEC) sued the digital cryptocurrency exchange Coinbase in New York federal court today, accusing Coinbase of violating U.S. securities laws for many years.

The SEC said that as the largest digital cryptocurrency platform in the United States, Coinbase has long allowed users to trade a large number of digital encryption tokens (crypto tokens), which are actually unregistered securities, which violates US securities laws.

A Coinbase spokesperson has yet to comment.

In July last year, it was reported that Coinbase was being investigated by the SEC because Coinbase added more than a hundred additional digital encryption tokens to its platform, including Dogecoin (Dogecoin). The SEC believes that these are unregistered securities. Therefore, Coinbase’s actions violated the relevant provisions of the US securities laws.

In March of this year, Coinbase said it had received a warning from the SEC that it may be about to take enforcement action against it. Coinbase CEO Brian Armstrong (Brian Armstrong) said at the time that he welcomed the SEC’s enforcement action against Coinbase because it was a good opportunity to go to court. At the same time, this move can also expose the SEC’s lack of supervision of digital cryptocurrencies.

Today, the SEC also accused Coinbase of violating SEC regulations with its “staking” service. The service essentially allows network participants to passively earn some form of interest by storing their tokens to maintain the network and earn token rewards.