SEC sues Coinbase for operating as an unregistered broker

From the complaint:

• SEC says Coinbase has operated as an unregistered broker since at least 2019
• Crypto assets that Coinbase makes available put Coinbase's operatings 'squarely within the purview of the securities laws'
• Coinbase's staking program includes five stakeable crypto assets, makign the staking program an investment contract and therefore a security
• Coinbase has never registered as a broker, evaidign the disclosure scheme for securities markets
• Full complaint

Yesterday, the regulators came for Binance and today it's Coinbase. Everyone in the forex Forex Forex, also known as foreign exchange or FX, is the buying and selling of one currency for another. The foreign exchange market is the largest financial market in the world, with an average daily trading volume of over $5 trillion. Forex trading can be done through a broker or market maker, and can be done online or over the phone. The vast majority of forex trading is done by businesses buying and selling products along with money managers hedging against currency risk. A portion of the forex m Forex, also known as foreign exchange or FX, is the buying and selling of one currency for another. The foreign exchange market is the largest financial market in the world, with an average daily trading volume of over $5 trillion. Forex trading can be done through a broker or market maker, and can be done online or over the phone. The vast majority of forex trading is done by businesses buying and selling products along with money managers hedging against currency risk. A portion of the forex m Read this Term market saw this years ago; when the regulators come, they leave with body bags.

Shares of COIN are down 15.2% premarket on the news.

"The Coinbase Platform merges three functions that are typically separated in traditional securities markets—those of brokers, exchanges, and clearing agencies. Yet, Coinbase has never registered with the SEC as a broker, national securities exchange, or clearing agency while paying lip service to its desire to comply with applicable laws, Coinbase has for years made available for trading crypto assets that are investment contracts under the Howey test and well-established principles of the federal securities laws."