Coinbase Receives “Show Cause” Order From 10 US States

Coinbase News: U.S. biggest cryptocurrency exchange, Coinbase Global Inc (NASDAQ: COIN) seems to be getting into big trouble as 10 state regulators joined Securities and Exchange Commission (SEC) in filing legal actions. Coinbase Stock price is already tumbling by 13% after SEC launched action.

Also Read: We Don’t Need More Digital Currencies, Says SEC Chair

More Trouble For Coinbase?

As per the fillings, the Alabama Securities Commission (ASC) issued a show cause order to Coinbase. The order mentions providing the crypto exchange with 28 days to show cause why they should not be directed to cease and desist from selling unregistered securities in the state.

It added that this action is taken by the task force of ten state securities regulators. This multistate task force includes Alabama, California, Illinois, Kentucky, Maryland, New Jersey, South Carolina, Vermont, Washington, and Wisconsin state regulators.

The state regulator alleges that Coinbase violated the U.S. securities law. It highlighted that the exchange offered its staking reward program to Alabama residents without registering with them. It added that ASC does not prohibit Coinbase from offering staking services as long as they follow Alabama’s laws. Read More Coinbase News Here…

US SEC Attack On Crypto To Continue?

Coingape reported that SEC sued the U.S. biggest crypto exchange for operating illegally as it failed to comply with them. Earlier, the commission sued the world’s biggest crypto exchange Binance and its CEO Changpeng Zhao.

It should be noted that both big civil cases are part of the US SEC Chairmen’s fresh push to contend its jurisdiction over digital asset markets. Meanwhile, the commission of these allegations comes amid Coinbase’s freshly launched campaign to obtain clarity over crypto regulations.

Also Read: It’s An Attack On The Entire Industry, Says Binance CEO

COIN stock price dropped by $7.7 or 13% to trade at $50.93, at the press time. However, its share price dropped by 20% on the prior day.