SEC accused Coinbase of working without registration

The Securities and Exchange Commission (SEC) has charged the cryptocurrency exchange Coinbase Inc. with operating without registration as a broker, a national securities exchange and a clearing agency. Coinbase is also accused of selling securities without registering their offer.

The SEC's lawsuit notes that Coinbase earned billions of dollars in revenue, including by receiving transaction fees from investors who were deprived of the reports and protection that registration implies, and therefore exposed to significant risk. 

The SEC complaint also alleges that Coinbase's holding company, Coinbase Global Inc. (CGI), is the controlling entity of Coinbase and thus is also responsible for some of Coinbase's violations.

The day before, the Commission accused another cryptocurrency exchange, Binance Holdings Inc., and its founder Changpeng Zhao of 13 cases of violations of the rules of working with securities.

Coinbase Global's stock prices are down 20% in preliminary trading on Tuesday.