TechFlow news, the U.S. Securities and Exchange Commission (SEC) stated in a lawsuit against Coinbase that although Coinbase has earned billions of dollars in revenue, it has operated without registration and lacks necessary disclosures and protections. Coinbase has never obtained any applicable exemption and has not registered as a broker, national securities exchange, or clearing agency.
Since 2019, Coinbase has operated at least as an unregistered broker, including recruiting potential investors, handling customer funds and assets, and charging transaction-based fees.
In addition, Coinbase has operated as an unregistered exchange, providing market services by bringing together multiple buyers and sellers of crypto assets and matching and executing their orders.
Furthermore, Coinbase’s staking-as-a-service program has also not been registered. The SEC stated that for years, Coinbase has violated the regulatory framework and failed to meet the disclosure requirements established by Congress and the SEC to protect the nation's securities markets and investors.
