US regulator threatens Coinbase of a potential lawsuit

Image Source : FREEPIK US regulator threatens Coinbase of a potential lawsuit

The Securities and Exchange Commission (SEC) is reportedly planning to sue Coinbase, one of the largest cryptocurrency exchanges in the world. The regulator has flagged the exchange’s wallet service and feature called Coinbase Earn. The company received Well’s notice from SEC, which is an indication that the regulator believes the company has violated investor protection laws and an alert for a potential action from SEC. The CEO of Coinbase alleged that they were handed with a legal notice while they asked for clear cryptocurrency regulation in the United States.

The price of Coinbase’s shares dropped almost 12% after hours, following an 8% drop during normal trading. Following the Federal Reserve’s decision on Wednesday to raise interest rates and SEC notice to Coinbase, cryptocurrencies, including bitcoin experienced a downturn after several days of surge. Bitcoin fell from $28,000 to below $27,000.

A SEC case against a cryptocurrency exchange could have dire consequences, since authorities can ask for injunctions to stop the business from engaging in activities they claim are illegal. In addition, Wells Notice claimed that Coinbase had mentioned digital assets that might be considered unlicensed securities, though it did not identify which assets they might be.

Major cryptocurrencies are trading as follows as of 9 am IST, 23rd March 2023:

Bitcoin: $27,408 USD


Ethereum: $1,742.25 USD


Tether: $1.00 USD


USD Coin: $0.9988 USD


BNB: $321.27 USD


XRP: $0.4236 USD


Dogecoin: $0.07415 USD


Cardano: $0.3581 USD


Polygon: $1.11 USD


Polkadot: $6.10 USD


Tron: $0.06102 USD


Litecoin: $87.98 USD


Shibu Inu: $0.00001063


ALSO READ: Crypto exchange ‘Coinbase’ reportedly setting a branch outside US to avoid regulatory crackdown

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