[ccpw id="5"]

HomeNewsCoinbase Stock Plummets 18% Pre-Market Following SEC Lawsuit

Coinbase Stock Plummets 18% Pre-Market Following SEC Lawsuit


The US Securities and Exchange Commission (SEC) has recently filed a lawsuit against Coinbase. The federal agency accused the crypto exchange of acting as a broker, national securities exchange, and clearing agency without requisite registration.

Additionally, the lawsuit alleges that several crypto assets offered on Coinbase, including leading cryptocurrencies like Solana, Cardano, and Polygon, are unregistered securities.

Market Impact on Coinbase Stock

Coinbase, which has often positioned itself as a legally abiding participant in the unpredictable crypto sector, is now in the legal crosshairs of the SEC.

The allegations focus on the exchange’s failure to provide crucial investor protections. Consequently, encompassing safeguards against fraud, manipulation, adequate disclosure, and routine SEC inspection.

After the SEC’s announcement, Coinbase shares witnessed a significant downturn. The stock, labeled as COIN, plunged by over 18% in the pre-market trading session, dropping from $58.71 to a low of $47.

Coinbase Stock, COIN, Price. Source: Google Finance

The adverse effect on Coinbase’s stock price underscores the financial implications of regulatory actions in the cryptocurrency industry.

SEC’s Increasing Scrutiny of Crypto Exchanges

This lawsuit comes on the heels of another SEC action against Binance, a major competitor to Coinbase. It also comes months after Coinbase disclosed receiving a Wells Notice from the SEC.

The Wells Notice is a tool the SEC uses to inform companies of impending legal investigations. The SEC’s actions against Coinbase and Binance may indicate a broader regulatory trend.

SEC Chair Gary Gensler has expressed a need for increased oversight in the crypto industry.

Investors are bracing for further volatility, with the SEC hinting at more potential lawsuits in the crypto space. As these regulatory pressures escalate, the crypto industry could witness a significant reshaping of its landscape.

It is clear that the SEC’s message is firm: compliance with securities laws is non-negotiable, regardless of the nature or novelty of the assets involved.

Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, stated:

“You simply can’t ignore the rules because you don’t like them or because you’d prefer different ones: the consequences for the investing public are far too great.”

The post Coinbase Stock Plummets 18% Pre-Market Following SEC Lawsuit appeared first on BeInCrypto.


Wemade launches Drops NFT auction service on WEMIX PLAY 

Game NFTs and special NFTs will be available through English Auction on Drops  NFT auctions for new games Melting Earth, Ballies and Yield KingZ, will be...

Wemade welcomes two new US game developers to join top global blockchain gaming platform WEMIX PLAY

WEMIX PLAY to onboard Ballies, the innovative NFT project that combines sports, gaming & NFTs and immersive blockchain soccer management game, El Jefe Futbol Trading of...

Dubai to Witness World’s Largest Web3 Conference: ABC Conclave to Unite Global Web3 Pioneers in Dubai World Trade Centre

ABC Conclave, is set to gather blockchain enthusiasts, industry leaders, and innovators from around the globe on 7-8 October 2023 at the prestigious Dubai World...

Crypto Expo Dubai 2023 Unveils Premier Sponsors and Stellar Speaker Lineup

The much-awaited Crypto Expo Dubai 2023 is set to elevate the crypto landscape to new heights with an exciting array of sponsors and a lineup...

Follow us


Most Popular