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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
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.
Coinbase seems more in the clear. But i wouldn't take any chances. Armstrong not charged though
— Jim Cramer (@jimcramer) June 6, 2023
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.
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.
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