US operations for cryptocurrency exchanges are on the agenda. Now the new target is Coinbase. An order has been issued for Coinbase today. Let’s have a look at the details.
Cryptocurrency exchange targeted by regulators
There’s a statement coming up today by the Alabama Securities Commission. Accordingly, a multi-state task force made up of state regulators from Alabama, California, Illinois, Kentucky, Maryland, New Jersey, South Caroline, Vermont, Washington and Wisconsin has issued a Show Why Order against cryptocurrency exchange Coinbase. The order emphasizes that Coinbase offers staking rewards program accounts to Alabama residents without registration to offer or sell securities. He is also accused of violating the securities law against Coinbase.
The order specifically gives Coinbase 28 days to stop selling unregistered securities in Alabama. The move didn’t stop there. Coinbase today received a notice of action from the United States Securities and Exchange Commission. Accordingly, there is an allegation that unregistered securities are offered on the cryptocurrency exchange. The claims claim Coinbase takes a share of the staking-focused profits before sharing it with investors. On the other hand, as we stated as Kriptokoin.com, the Alabama Securities Commission states that Coinbase does not prohibit staking services as long as it complies with Alabama laws.
The allegations are not limited to
The Alabama Securities Commission is taking action on Coinbase’s approximately 3.5 million staking reward program accounts nationwide. Accordingly, it also says it is “not insured by the Federal Deposit Insurance Corporation (FDIC) or the Securities Investor Protection Agency (SIPC). As a result, regulators claim that “there is no loss protection for any of these accounts, including the more than 33,000 accounts currently held by Alabama investors.” The Commission is also making a call to investors. Accordingly, it advises investors to check their registration status before investing their money in such programs. There is also a recommendation to contact the Commission for registration status.
Simultaneously, there are different issues in the SEC lawsuit against cryptocurrency exchange Coinbase. The accusation that Coinbase never registered as a broker is in focus. There is also the emphasis that it does not register as a national stock exchange or clearing house. On the other hand, it is among the allegations that he avoided the disclosure plan for the securities markets. Touching on the latest Coinbase case, SEC Chairman Gary Gensler made interesting statements. He claimed that the cryptocurrency exchange deprived its customers of critical protections that prevent fraud and manipulation. Kraken, another cryptocurrency exchange, is having a similar problem. However, the US agreed with the SEC for $ 30 million regarding its crypto staking program. Another SEC lawsuit filed against the crypto exchange Binance is pending.
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