Coinbase was sued for allegedly facilitating the trading of securities such as SOL, ADA, and MATIC on its platform, according to the 101-page complaint.
The U.S. Securities and Exchange Commission (SEC) has filed a 101-page complaint against Coinbase, the biggest cryptocurrency exchange in the United States, only one day after bringing many allegations against Binance.
Coinbase, like Binance, was charged with operating without the proper licences while performing the same roles as a broker, national securities exchange, and clearing agency.
Despite giving “lip service” to the goal of being legally compliant, Coinbase was also accused of breaking securities laws by making assets that passed the Howey Test accessible for trading on its exchange.
The government included SOL, ADA, and MATIC on its list of large-cap crypto assets. “Coinbase has put making more money ahead of protecting investors’ interests and following the law and regulations that govern the securities markets,” the commission said.
The SEC also claimed that Coinbase “deprived investors of material information about the program” by failing to register its staking-as-a-service offering. Coinbase knew a legal challenge to its stance that staking products are not securities was coming months in advance.
For the SEC to be satisfied, Coinbase must “disgorge their illicit profits and to pay interest in judgement thereon.”
