SEC charges Coinbase for illegally operating an unregistered securities exchange


The Securities and Exchange Commission charged digital-asset exchange Coinbase Global Inc. COIN, -9.05% with operating an unregistered national securities exchange, brokerage and clearing agency.

The SEC also charged the company for offering its crypto staking service without registering with the agency.

“We allege that Coinbase, despite being subject to the securities laws, commingled and unlawfully offered exchange, broker-dealer, and clearinghouse functions,” SEC Chairman Gary Gensler said in a statement.

“Coinbase’s alleged failures deprive investors of critical protections, including rulebooks that prevent fraud and manipulation, proper disclosure, safeguards against conflicts of interest, and routine inspection by the SEC,” he added.

Coinbase shares were down more than 16% in premarket trade.

Coinbase didn’t immediately respond to a request for comment.

This article was originally published by Read the original article here.

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