The Securities and Exchange Commission (SEC) has filed charges against Coinbase, accusing it of operating an unregistered securities exchange, broker, and clearing agency since 2019. The SEC also alleges that Coinbase has been running an unregistered securities offering via its staking-as-a-service program.
The complaint states that Coinbase’s failure to register has deprived investors of essential protections. The SEC is seeking a range of penalties including injunctive relief and disgorgement of ill-gotten gains. The regulator’s Chair Gary Gensler criticized Coinbase for allegedly ignoring rules and depriving investors of critical protections.