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US regulator threatens Coinbase of a potential lawsuit

The regulator is planning a lawsuit against some essential aspects of the exchange’s business.

India TV Business Desk Edited By: India TV Business Desk New Delhi Published on: March 23, 2023 10:27 IST
US regulator threatens
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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