Key Differences In SEC Charges Against Coinbase And Binance

Anvesh Reddy
June 6, 2023
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Crypto Market News: Less than 24 hours from filing charges against world’s top crypto exchange Binance, the U.S. Securities and Exchange Commission (SEC) had on Tuesday filed a lawsuit against top US based exchange Coinbase.

US SEC accused Coinbase of operating as an unregistered broker, exchange, and clearing agency. However, it appears that the US based exchange is being given soft treatment when compared to the Binance lawsuit. Meanwhile, the Bitcoin price suffered significantly due to the back to back lawsuits against the top two crypto exchanges in crypto market.

Also Read: Binance Used FTX-Like Web Of Firms To Dodge Regulations, US SEC Lawsuit Reveals

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Coinbase CEO Brian Armstrong Saved From Lawsuit

A key difference between the lawsuits against Coinbase and Binance lies in Changpeng Zhao’s naming as against the lack of Brian Armstrong’s name in the Coinbase SEC lawsuit. Coinbase has been accused of operating as an unregistered broker since 2019, soliciting potential investors, handling customer funds and assets, without securing the relevant registration. Whereas the SEC sued Binance as well as CZ for violating US securities laws, filing 13 charges including of illegally operating in the US and lying to users.

CNBC host Jim Cramer also felt the Coinbase lawsuit was less severe, considering that the SEC left out CEO Armstrong from charges.

This is not the first instance where US regulators appeared to be biased against Binance, compared to the US based exchange. Previously, Coinbase was served a Wells Notice over potential breach of securities laws, while the US Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance, including CZ over charges of violating regulations around trading and derivatives.

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Coinbase Stock Price Nosedives

The Coinbase stock price took a sharp fall at market open on Tuesday, thanks to the SEC lawsuit news. Overall, the crypto market faces yet another spell of regulatory shock but recent history of quick bounce back triggers hope for immediate recovery, in the context of the US Fed rate hike pause speculation among traders.

The $COIN stock was trading at $50.8 down by more than 13% today.

Coinbase Stock Price Crashes

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Anvesh reports major crypto updates around U.S. regulation and market moving trends. Published over 1400 articles so far on crypto and blockchain. A proud dropout of University of Massachusetts, Lowell. Can be reached at [email protected] or x.com/BitcoinReddy or linkedin.com/in/anveshreddybtc/
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.