Coinbase tumbles on Wall Street after SEC allegations: ‘Breaking the Rules’ – Corriere.it
Coinbase, the largest U.S. crypto platform, is plummeting on Wall Street, where the stock is down 17% following SEC allegations. The Securities and Exchange Commission (SEC), the regulator of US financial markets, is suing the platform, accusing it of violating its rules for years. The indictment states that Coinbase put its interest in increasing profits ahead of the interests of investors and compliance with the law and the regulatory framework that governs markets and is designed to protect US investors and capital markets. Bitcoin has also fallen following the SEC allegations against Coinbase. The cryptocurrency is down 4.4% to $25,523 and could lose another 15% as US authorities tighten in the crypto world, according to analysts.
According to the SEC, Coinbase would operate as an unregistered exchange. Exchanges of financial securities are carried out for the regulator on Coinbase, which would have required registering the platform. According to the indictment, at least 13 cryptocurrencies should be considered financial assets. These include Solana’s Sol token, Cardano’s token, and Protocol Labs’ Filecoin token. Coinbase has made billions of dollars by collecting transaction fees from investors who the company has not provided the information and protections needed to register traders, leaving customers at significant risk, the SEC said.
The Securities and Exchange Commission’s lawsuit against Coinbase comes a day after Binance, the world’s largest cryptocurrency exchange, and its founder Changpeng Zhao were accused of misusing investor funds, operating as an unregistered exchange and violating a series of U.S. laws.