The U.S. Securities and Exchange Commission (SEC) has sued U.S crypto exchange Coinbase (COIN) on allegations of violating federal securities law.
A day earlier, the SEC sued Binance and its CEO Changpeng Zhao on similar grounds.
The SEC is accusing Coinbase of has operating as an unregistered broker, exchange and clearing agency simultaneously.
The SEC argued that Coinbase solicited customers, handled orders, allowed for bids and acted as an intermediary all at once.
Unlike the Binance case, this suit did not name founder and CEO Brian Armstrong or any other executive.
The entire crypto market and Coinbase’s premarket stock price fell on news of the suit.
The SEC identified solana (SOL), cardano (ADA), polygon (MATIC), sandbox (SAND), filecoin (FIL) and other tokens as securities.
