Headline Roundup • June 6th, 2023
SEC Sues Coinbase and Binance, Alleging Unregistered Securities Trading
Summary from the AllSides News Team
The Securities and Exchange Commission sued Coinbase and Binance, the largest cryptocurrency trading platforms in the U.S. and the world, respectively.
The Details: Regulators accused Coinbase of failing to register as a securities exchange. The Binance allegations include trading unregistered securities as well as accusations that it created a separate exchange, Binance.US, to shield it from legal action while enticing U.S. customers to trade on its larger, unregulated international exchange. Furthermore, the SEC said Binance secretly sent billions of dollars from investors to a separate company owned by Binance CEO Changpeng Zhao. Binance said Monday it was trying to reach a settlement with regulators. Investors pulled hundreds of millions of dollars out of both trading platforms after the lawsuits were announced.
Currencies vs. Securities: The SEC’s lawsuits treat several digital tokens traded on the platforms — not including popular cryptocurrencies like Bitcoin and Ethereum — as unregistered financial securities. SEC chair Gary Gensler told CNBC (Center bias) that the platforms were “commingling a number of functions,” adding, “We don’t see the New York Stock Exchange operating a hedge fund.”
How the Media Covered It: Most news coverage came from business and tech outlets rated Center and Lean Left; some major outlets on the right used wire service from AP (Lean Left bias) and others. Content itself was generally similar and nonpartisan.
Featured Coverage of this Story
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The Securities and Exchange Committee filed a lengthy lawsuit against Coinbase on Tuesday, accusing the largest crypto exchange in the US of operating as an illegal, unregistered broker and exchange for its crypto exchange, Coinbase Prime, and its Coinbase Wallet. The legal action comes less than 24 hours after the SEC filed a separate suit against Binance accusing it of running an illegal crypto scheme and engaging in “an extensive web of deception.” It’s only Tuesday, but it’s already looking like one of the shakiest weeks for the crypto industry since last year’s dramatic FTX meltdown. Binance saw hundreds...
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The Securities and Exchange Commission (SEC) is suing U.S. cryptocurrency exchange Coinbase Inc., accusing it of operating as an unregistered broker.
In the complaint filed in Manhattan federal court, the SEC said that since at least 2019 Coinbase has pocketed billions of dollars by collecting transaction fees from investors without the disclosures and protections of registration, exposing its customers to risk.
Because of its failure to register, Coinbase "has for years defied the regulatory structures and evaded the disclosure requirements that Congress and the SEC have constructed for the protection of the national securities...
The U.S. Securities and Exchange Commission (SEC) sued U.S crypto exchange Coinbase (COIN) on allegations of violating federal securities law, a day after filing a similar suit against Binance.
According to the SEC, Coinbase has operated as an unregistered broker, exchange and clearing agency simultaneously, arguing that it solicited customers, handled orders, allowed for bids and acted as an intermediary all at once. The suit named Coinbase, Inc. and Coinbase Global, Inc. as defendants, but did not name founder and CEO Brian Armstrong or any other executive.
"The Coinbase Platform merges...
