The Securities and Exchange Commission sued Coinbase, the largest cryptocurrency trading platform in the United States, on Tuesday, claiming that the company broke securities law by not registering as a broker.
The nation’s top securities regulators filed the lawsuit a day after it sued Binance, the world’s biggest cryptocurrency trading exchange, for mishandling customer funds and lying to American regulators and investors about its operations.
Coinbase has made billions facilitating the sale of crypto assets, the S.E.C. said in a statement, but deprived investors of significant protections.
