{"id":51413,"date":"2023-06-06T17:54:48","date_gmt":"2023-06-06T21:54:48","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=51413"},"modified":"2023-06-06T19:43:12","modified_gmt":"2023-06-06T23:43:12","slug":"coinbase-stock-drops-after-sec-sues-crypto-exchange","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/coinbase-stock-drops-after-sec-sues-crypto-exchange\/","title":{"rendered":"Coinbase Stock Drops After SEC Sues Crypto Exchange"},"content":{"rendered":"\n

Shares of Coinbase are down 20% after the Securities and Exchange Commission<\/a> sued the crypto company for allegedly violating securities law.<\/p>\n\n\n\n

\"Coinbase
Coinbase Stock Drops After SEC Sues Crypto Exchange<\/figcaption><\/figure>\n\n\n\n

At the time of writing, shares had dropped to an intraday low of $46.43. However, they have recovered slightly and are currently trading at $50.14. As a result, the corporation's market capitalization now stands at $13.7 billion.<\/p>\n\n\n\n

On the same day, the US Securities and Exchange Commission filed a lawsuit against Coinbase, accusing them of operating an unlicensed national securities exchange, broker, and clearing agency. <\/p>\n\n\n\n

Additionally, authorities accuse the exchange of failing to register the offer and sale of its staking-as-a-service program for digital assets<\/a>. Gary Gensler, chair of the SEC, stated:<\/p>\n\n\n\n

\n

“Coinbase's alleged failures deprive investors of critical protections, including rulebooks that prevent fraud and manipulation, proper disclosure, safeguards against conflicts of interest, and routine inspection by the SEC.” <\/p>\n<\/blockquote>\n\n\n\n

A task group consisting of 10 states securities authorities from Alabama, California, Illinois, Kentucky, Maryland, New Jersey<\/a>, South Carolina, Vermont, Washington, and Wisconsin filed a show-cause order against Coinbase. The charge alleged that:<\/p>\n\n\n\n

\n

“Coinbase violates the securities law by offering its staking rewards program accounts to Alabama residents without a registration to offer or sell these securities.” <\/p>\n<\/blockquote>\n\n\n\n

Therefore, after the ruling, Coinbase must respond and present justifications within a 28-day period. The exchange must state the reason why they should not be compelled to cease offering unregistered securities in Alabama.<\/p>\n\n\n\n

Coinbase stock debuted on the American Nasdaq exchange\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> on April 14, 2021. Since reaching an all-time high of $435 on the day of listing, shares have dropped 88%.<\/p>\n\n\n\n

As part of its listing requirement, the exchange needs to submit a Form S-1 to the SEC. This is to register with the watchdog and obtain regulatory approval.<\/p>\n","protected":false},"excerpt":{"rendered":"

Shares of Coinbase are down 20% after the Securities and Exchange Commission sued the crypto company for allegedly violating securities law. At the time of writing, shares had dropped to an intraday low of $46.43. However, they have recovered slightly and are currently trading at $50.14. As a result, the corporation’s market capitalization now stands […]<\/p>\n","protected":false},"author":43,"featured_media":51415,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32],"tags":[150,1406,143],"class_list":["post-51413","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-exchange-news","tag-coinbase","tag-crypto-exchange","tag-sec"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/06\/croc_1686084141897.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/51413","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/43"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=51413"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/51413\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/51415"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=51413"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=51413"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=51413"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}