Coinbase is still listing tokens despite the lawsuit brought against the company by the Securities and Exchange Commission (SEC).
Coinbase doesn’t seem fazed by the SEC lawsuit. The US-based cryptocurrency exchange announced that it has added Helium token (HNT), Vechain (VET) and VeThor token (VTHO) to its roadmap for token listing.
A blog post by CoinbaseAssets said that the company’s goal is to continue listing assets that meet their standards for legal, technical, and compliance. It added that they do not yet have enough information on those assets they have not listed. Coinbase maintained that the listing of the assets is part of the company’s transparency policy.
Selling unregistered securities
In a June 6 press release, the SEC announced that it has charged Coinbase with operating as an unregistered securities exchange, broker, and clearing agency.
The regulator also alleged that Coinbase sold unregistered securities, making reference to the staking service that the exchange offers its customers.
The commission alleged that Coinbase deprived its customers of protection by failing to register their service with the regulator, adding that the company has made billions of dollars through its unlawful activities in cryptocurrency transactions.
The SEC’s violation charges
It further identified Coinbase Global Inc. as the controlling entity liable for the violations, stating that the company:
- Provides a marketplace and brings together the orders for securities of multiple buyers and sellers using established, non-discretionary methods under which such orders interact;
- Engages in the business of effecting securities transactions for the accounts of Coinbase customers; and
- Provides facilities for comparison of data respecting the terms of settlement of crypto asset securities transactions, serves as an intermediary in settling transactions in crypto asset securities by Coinbase customers, and acts as a securities depository.
The lawsuit against Coinbase is one of the high profile regulatory actions involving legal actions by the Securities and Exchange Commission. Another top cryptocurrency exchange, Binance, has also been charged with violations by the commission.