Update (1300ET): Copinbase CEO Brian Armstrong took to Twitter to respond to the SEC lawsuit:
Regarding the SEC complaint against us today, we're proud to represent the industry in court to finally get some clarity around crypto rules.
1. The SEC reviewed our business and allowed us to become a public company in 2021.
2. There is no path to "come in and register" - we tried, repeatedly - so we don't list securities. We reject the vast majority of assets we review.
3. The SEC and CFTC have made conflicting statements, and don't even agree on what is a security and what is a commodity.
4. This is why the US congress is introducing new legislation to fix the situation, and the rest of the world is moving to put clear rules in place to support this technology.
Instead of publishing a clear rule book, the SEC has taken a regulation by enforcement approach that is harming America. So if we need to avail ourselves of the courts to get clarity, so be it.
Btw, in case it's not obvious, the Coinbase suit is very different from others out there – the complaint filed against us is exclusively focused on what is or is not a security. And we are confident in our facts and the law.
We'll get the job done. In the meantime, let's all keep moving forward and building as an industry. America will get this right in the end.
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A day after the SEC sued Binance - the world's largest crypto exchange - Bloomberg reports that Gensler and his anti-crypto goons have now sued Coinbase in federal court in New York on Tuesday, alleging the crypto firm broke US securities rules, claiming the exchange is acting as an unregistered broker.
"We allege that Coinbase, despite being subject to the securities laws, commingled and unlawfully offered exchange, broker-dealer, and clearinghouse functions," Gensler said in a statement.
"Coinbase's alleged failures deprive investors of critical protections, including rulebooks that prevent fraud and manipulation, proper disclosure, safeguards against conflicts of interest, and routine inspection by the SEC," he added.