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SEC Sues Coinbase Over Crypto Staking Program

SEC Sues Coinbase Over Crypto Staking Program

The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Coinbase, one of the largest cryptocurrency exchanges in the world, over its exchange and staking program.

The SEC alleges that Coinbase’s program, which allows users to earn interest on their crypto holdings by lending them to other users, violates federal securities laws. The SEC claims that Coinbase is offering unregistered securities to its customers, and that it failed to provide adequate disclosures about the risks and rewards of the program.

Coinbase denies the allegations and says that it has been transparent and cooperative with the SEC. The company argues that its program is not a security, but a service that benefits its customers and the crypto industry. Coinbase says that it has been trying to obtain regulatory clarity from the SEC for months, but that the agency has been hostile and unresponsive.

The lawsuit is the latest example of the SEC’s crackdown on the crypto sector, which has intensified under the new chair Gary Gensler. The SEC has also sued several other crypto companies, such as Ripple, BlockFi, and Uniswap, over similar issues. The SEC says that it is trying to protect investors from fraud and manipulation, while the crypto industry says that the SEC is stifling innovation and growth.

The outcome of the lawsuit could have significant implications for the future of crypto regulation in the U.S., as well as for Coinbase’s business model and reputation. Coinbase is one of the most popular and trusted platforms for buying, selling, and storing cryptocurrencies, with over 68 million verified users and $223 billion in assets on its platform. The company went public in April 2021, becoming the first major crypto company to do so.

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