Shares of the world’s second-largest cryptocurrency exchange in terms of trading volume, Coinbase, plummeted after learning of a lawsuit filed by the United States Securities and Exchange Commission (SEC).
This morning, the Actions de Coinbase ($COIN) were trading at approximately $63.4. However, with the opening of the markets this Tuesday, July 6, the shares fell to USD 47. This represents a 26% drop in a single day. This is one of the biggest falls in the history of Coinbase shares.
after the fall, stocks experienced a slight recovery and, as of this writing, they are trading above $50. The company has lost almost $5 billion in market value due to this drop, and its current capitalization is around $10 billion.
The SEC is suing Coinbase for alleged violation of securities laws that require exchange traders Have the necessary licenses to operate in the markets. According to him document of the lawsuit, “Coinbase has never registered with the SEC as a broker, national exchange, or clearing agency, thereby evading the disclosure regime that Congress has established for our securities markets.”
Coinbase is an exchange that operates with cryptocurrencies. However, the SEC alleges that some of these are securities, such as SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO.
This is the second lawsuit against an exchange so far this week, as the SEC filed a lawsuit against Binance, the largest exchange, on Monday. In that case, the SEC also alleged alleged violation of federal laws for operating without a license, according to CriptoNoticias.
Unlike the case of Binance, where Bitcoin experienced a 6% drop after the news broke, the lawsuit against Coinbase did not have a considerable impact in the price up to the time of publication.