{"id":536696,"date":"2023-06-06T18:00:37","date_gmt":"2023-06-06T18:00:37","guid":{"rendered":"https:\/\/wncen.com\/?p=536696"},"modified":"2024-06-11T14:37:20","modified_gmt":"2024-06-11T14:37:20","slug":"coinbase-caught-in-sec-legal-crossfire-coin-price-suffers","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/coinbase-caught-in-sec-legal-crossfire-coin-price-suffers\/","title":{"rendered":"Coinbase Caught In SEC Legal Crossfire, COIN Price Suffers"},"content":{"rendered":"

Coinbase, the leading cryptocurrency trading platform in the United States, has recently found itself embroiled in a legal battle with the US Securities and Exchange Commission (SEC). The SEC filed<\/a> a lawsuit on Tuesday, accusing Coinbase of operating without proper registration, thereby violating regulations designed to safeguard investors. <\/span><\/p>\n

This lawsuit has sent shockwaves through the crypto market<\/a>, impacting not only the global cryptocurrency market but also Coinbase’s stock value and triggering concerns about the broader implications for the industry.<\/span><\/p>\n

The SEC Lawsuit Against Coinbase<\/span><\/h2>\n

In a complaint lodged with the Manhattan federal court, the SEC alleges that Coinbase has been functioning as an unregistered broker since about 2019, breaching disclosure requirements aimed at protecting investors.<\/span><\/p>\n

Related Reading: When Is A Token Coming For Coinbase\u2019s Base L2? Here\u2019s What The Roadmap Says<\/a><\/div>\n

The regulator also claims that Coinbase<\/a>, through its various services such as Coinbase Prime and Coinbase Wallet, facilitated cryptocurrency transactions without obtaining the necessary authorization. <\/span><\/p>\n

SEC Chair Gary Gensler emphasized the gravity of Coinbase’s alleged failures, stating that they deprived investors of crucial protections against fraud, manipulation, conflicts of interest, and routine inspections. <\/span><\/p>\n

The SEC chairman noted:\u00a0<\/span><\/p>\n

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.<\/p><\/blockquote>\n

During an interview<\/a> with CNBC on Tuesday, Gensler remarks about crypto trading platforms and questioned their operational models. He highlighted the fact that these platforms, often referred to as exchanges, encompasses various functions that go beyond traditional exchange activities. Drawing a comparison, he said that the New York Stock Exchange does not engage in hedge fund operations.<\/span><\/p>\n

Market Impact And COIN Stock Decline<\/span><\/h2>\n

News of the SEC lawsuit had an immediate impact on Coinbase’s stock value, which plunged significantly during premarket trading following the filing. <\/span><\/p>\n

The legal action against Coinbase comes on the heels of the SEC’s recent lawsuit<\/a> against Binance, the world’s largest cryptocurrency exchange, and its founder Changpeng Zhao, further intensifying scrutiny<\/a> on the industry.<\/span><\/p>\n

Related Reading: Bitcoin (BTC) Dominance Trend Shifts Alongside Stablecoin Flows: Glassnode<\/a><\/div>\n

In the wake of the SEC lawsuit<\/a>, Coinbase’s stock (COIN) has experienced a significant downturn, recording a 13% loss in just one day. This downward trend has seen Coinbase shares tumble from a high of $64 last Tuesday to $50.15 within the past 24 hours.<\/span><\/p>\n

\"Coinbase<\/p>\n

Coinbase stock (COIN)\u2019s value moving sideways on the 1-day chart. Source: COIN on TradingView.com<\/a><\/pre>\n

The outcome of the legal battle and its potential implications for Coinbase’s operations could have lasting effects on the company’s stock performance and the broader cryptocurrency market.<\/span><\/p>\n

Already, the fallout from these legal challenges has resulted in a 2.8% decline in the global crypto market, causing its overall value to dip below the $1.2 trillion mark, which had previously served as a plateau. <\/span><\/p>\n

Larger crypto market such as Bitcoin (BTC)<\/a> and Ethereum (ETH) has also fallen dramatically with both recording 2.7% and 1.3% decline in the past 24 hours, respectively.<\/span><\/p>\n

Featured image from Shutterstock, Chart from TradingView<\/p>\n","protected":false},"excerpt":{"rendered":"

Coinbase, the leading cryptocurrency trading platform in the United States, has recently found itself embroiled in a legal battle with the US Securities and Exchange Commission (SEC). The SEC filed a lawsuit on Tuesday, accusing Coinbase of operating without proper registration, thereby violating regulations designed to safeguard investors. This lawsuit has sent shockwaves through the crypto market, impacting not only the global cryptocurrency market but also Coinbase’s stock value and triggering concerns about the broader implications for the industry. The SEC Lawsuit Against Coinbase In a complaint lodged with the Manhattan federal court, the SEC alleges that Coinbase has been functioning as an unregistered broker since about 2019, breaching disclosure requirements aimed at protecting investors. Related Reading: When Is A Token Coming For Coinbase\u2019s Base L2? Here\u2019s What The Roadmap Says The regulator also claims that Coinbase, through its various services such as Coinbase Prime and Coinbase Wallet, facilitated cryptocurrency transactions without obtaining the necessary authorization. SEC Chair Gary Gensler emphasized the gravity of Coinbase’s alleged failures, stating that they deprived investors of crucial protections against fraud, manipulation, conflicts of interest, and routine inspections. The SEC chairman noted:\u00a0 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. During an interview with CNBC on Tuesday, Gensler remarks about crypto trading platforms and questioned their operational models. He highlighted the fact that these platforms, often referred to as exchanges, encompasses various functions that go beyond traditional exchange activities. Drawing a comparison, he said that the New York Stock Exchange does not engage in hedge fund operations. Market Impact And COIN Stock Decline News of the SEC lawsuit had an immediate impact on Coinbase’s stock value, which plunged significantly during premarket trading following the filing. The legal action against Coinbase comes on the heels of the SEC’s recent lawsuit against Binance, the world’s largest cryptocurrency exchange, and its founder Changpeng Zhao, further intensifying scrutiny on the industry. Related Reading: Bitcoin (BTC) Dominance Trend Shifts Alongside Stablecoin Flows: Glassnode In the wake of the SEC lawsuit, Coinbase’s stock (COIN) has experienced a significant downturn, recording a 13% loss in just one day. This downward trend has seen Coinbase shares tumble from a high of $64 last Tuesday to $50.15 within the past 24 hours. Coinbase stock (COIN)\u2019s value moving sideways on the 1-day chart. Source: COIN on TradingView.com The outcome of the legal battle and its potential implications for Coinbase’s operations could have lasting effects on the company’s stock performance and the broader cryptocurrency market. Already, the fallout from these legal challenges has resulted in a 2.8% decline in the global crypto market, causing its overall value to dip below the $1.2 trillion mark, which had previously served as a plateau. Larger crypto market such as Bitcoin (BTC) and Ethereum (ETH) has also fallen dramatically with both recording 2.7% and 1.3% decline in the past 24 hours, respectively. Featured image from Shutterstock, Chart from TradingView<\/p>\n","protected":false},"author":580,"featured_media":536698,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3],"tags":[10768,1379,1393,6664],"class_list":["post-536696","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-binance","tag-coin","tag-coinbase","tag-crypto"],"acf":[],"yoast_head":"\nCoinbase Caught In SEC Legal Crossfire, COIN Price Suffers<\/title>\n<meta name=\"description\" content=\"Coinbase, the leading cryptocurrency trading platform in the United States, has recently found itself embroiled in a legal battle with the US Securities\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others. Edyme\u2019s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis. Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events\u2014like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ\u2019s arrest\u2014has honed his keen sense of market dynamics. When he isn\u2019t crafting engaging crypto content, you\u2019ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he\u2019s catching some Z\u2019s or scrolling through Elon Musk\u2019s very own X platform\u2014(oops, another screen activity, my bad\u2026) Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters\u2014(don\u2019t judge, that\u2019s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or \u201ckaizen,\u201d striving to be 1% better every day. His mantras, \u201cGod knows best\u201d and \u201cEverything is still on track,\u201d reflect his resilient outlook and how he lives his life. In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He\u2019s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck\u2014unflappable. Edyme is like trading in your car for a jet\u2014bold. He\u2019s the guy who\u2019d ask his boss for a pay cut just to prove a point\u2014(uhhh\u2026). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent\u2014okay, maybe that\u2019s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps. Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That\u2019s just not the way he roll. He has these favorite lyrics from NF\u2019s \u201cClouds\u201d that resonate deeply with him: \u201cWhat you think's probably unfeasible, I've done already a hundredfold.\u201d PS\u2014Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He\u2019s 100% Him-alayan. Screw it, he ate the opp.","sameAs":["https:\/\/x.com\/0xEdyme"],"url":"https:\/\/wncen.com\/author\/samueledymeabayomi\/"}]}},"parsely":{"version":"1.1.0","meta":{"@context":"https:\/\/schema.org","@type":"NewsArticle","headline":"Coinbase Caught In SEC Legal Crossfire, COIN Price Suffers","url":"http:\/\/wncen.com\/news\/coinbase-caught-in-sec-legal-crossfire-coin-price-suffers\/","mainEntityOfPage":{"@type":"WebPage","@id":"http:\/\/wncen.com\/news\/coinbase-caught-in-sec-legal-crossfire-coin-price-suffers\/"},"thumbnailUrl":"https:\/\/wncen.com\/wp-content\/uploads\/2023\/06\/Coinbase-.jpeg?resize=200%2C200","image":{"@type":"ImageObject","url":"https:\/\/wncen.com\/wp-content\/uploads\/2023\/06\/Coinbase-.jpeg?fit=350%2C250"},"articleSection":"Cryptocurrency Market News","author":[{"@type":"Person","name":"Samuel Edyme"}],"creator":["Samuel Edyme"],"publisher":{"@type":"Organization","name":"NewsBTC","logo":"https:\/\/wncen.com\/wp-content\/uploads\/2020\/06\/cropped-cropped-cropped-favicon.png?w=32"},"keywords":["binance","coin","coinbase","crypto"],"dateCreated":"2023-06-06T18:00:37Z","datePublished":"2023-06-06T18:00:37Z","dateModified":"2024-06-11T14:37:20Z"},"rendered":"<script type=\"application\/ld+json\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@type\":\"NewsArticle\",\"headline\":\"Coinbase Caught In SEC Legal Crossfire, COIN Price Suffers\",\"url\":\"http:\\\/\\\/wncen.com\\\/news\\\/coinbase-caught-in-sec-legal-crossfire-coin-price-suffers\\\/\",\"mainEntityOfPage\":{\"@type\":\"WebPage\",\"@id\":\"http:\\\/\\\/wncen.com\\\/news\\\/coinbase-caught-in-sec-legal-crossfire-coin-price-suffers\\\/\"},\"thumbnailUrl\":\"https:\\\/\\\/wncen.com\\\/wp-content\\\/uploads\\\/2023\\\/06\\\/Coinbase-.jpeg?resize=200%2C200\",\"image\":{\"@type\":\"ImageObject\",\"url\":\"https:\\\/\\\/wncen.com\\\/wp-content\\\/uploads\\\/2023\\\/06\\\/Coinbase-.jpeg?fit=350%2C250\"},\"articleSection\":\"Cryptocurrency Market News\",\"author\":[{\"@type\":\"Person\",\"name\":\"Samuel Edyme\"}],\"creator\":[\"Samuel Edyme\"],\"publisher\":{\"@type\":\"Organization\",\"name\":\"NewsBTC\",\"logo\":\"https:\\\/\\\/wncen.com\\\/wp-content\\\/uploads\\\/2020\\\/06\\\/cropped-cropped-cropped-favicon.png?w=32\"},\"keywords\":[\"binance\",\"coin\",\"coinbase\",\"crypto\"],\"dateCreated\":\"2023-06-06T18:00:37Z\",\"datePublished\":\"2023-06-06T18:00:37Z\",\"dateModified\":\"2024-06-11T14:37:20Z\"}<\/script>","tracker_url":"https:\/\/cdn.parsely.com\/keys\/wncen.com\/p.js"},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/wncen.com\/wp-content\/uploads\/2023\/06\/Coinbase-.jpeg?fit=350%2C250","amp_enabled":true,"_links":{"self":[{"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/posts\/536696","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/users\/580"}],"replies":[{"embeddable":true,"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/comments?post=536696"}],"version-history":[{"count":0,"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/posts\/536696\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/media\/536698"}],"wp:attachment":[{"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/media?parent=536696"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/categories?post=536696"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/tags?post=536696"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}