SEC Lawsuit Shakess Coinbase

The US Securities and Exchange Commission (SEC) has taken legal action against Coinbase Global Inc., a major cryptocurrency platform, alleging that the company violated regulations by allowing users to trade crypto tokens considered unregistered securities. This move by the SEC has led to a 15% drop in Coinbase's stock price. It follows a similar lawsuit against Binance, the world's largest cryptocurrency platform, accused of various violations, including mishandling customer funds and breaking securities rules. The SEC is seeking an order to enforce compliance with securities laws and to require Coinbase to relinquish any unlawfully obtained profits. Coinbase has not yet responded to the lawsuit. Additionally, the SEC accused Coinbase of violating its rules through its staking service, which enables customers to earn returns by providing their crypto tokens for blockchain transactions.