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The Securities and Exchange Commission has sued Coinbase Global in federal court in New York, arguing that the cryptocurrency firm has violated the SEC’s own rules on financial products for years.
According to the authority, Coinbase, the largest cryptocurrency platform in the United States, circumvented regulations by allowing users to trade numerous tokens that were actually unregistered securities. Coinbase shares are down 9% on Wall Street in pre-market.
The move comes on the heels of the SEC filing a lawsuit against Binance, the world‘s largest platform, over a broader series of breaches amid a growing crackdown that could push digital currencies to the sidelines of the U.S. financial system.