Coinbase Stock Drops After SEC Sues Crypto Exchange

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Last Updated:

Jun. 6, 2023 at 6:39 PM EDT

Updated 13 hours ago

By

Hannah Miao

, Reporter

The Securities and Exchange Commission is suing Coinbase. (Dado Ruvic/Reuters)

Shares of Coinbase are down nearly 20% in morning trading Tuesday after the Securities and Exchange Commission sued the crypto company for allegedly violating securities law.

The SEC charged Coinbase for operating as an unregistered securities exchange, broker and clearing agency. The move comes a day after the SEC sued crypto exchange Binance, saying it ran an illegal crypto exchange in the U.S.

Investors had ample warning that a crackdown was coming: Coinbase shares closed at $77.14 per share on March 22, the day the SEC leadpos11">told the company it was planning enforcement action against it. On Monday, Coinbase closed at $58.70 after the SEC leadpos11">sued its peer Binance.

Coinbase Global Inc.

COIN (U.S.: Nasdaq)