SEC: Coinbase has never registered as a broker, national securities exchange, or clearing agency

ChainCatcher News, the U.S. Securities and Exchange Commission (SEC) claims in its lawsuit against Coinbase that the company has earned billions of dollars in revenue without the necessary disclosures and protections required for registration. Coinbase has never registered as a broker, national securities exchange, or clearing agency, and has not obtained any applicable exemptions. Coinbase has been operating as an unregistered broker since at least 2019, including recruiting potential investors, handling customer funds and assets, and charging transaction-based fees; it has also operated as an unregistered exchange, providing a market that aggregates multiple buyers and sellers of crypto assets and matches and executes those orders.

Additionally, Coinbase's staking-as-a-service program has also not been registered.

The SEC states that for years, Coinbase has violated the regulatory framework and does not meet the disclosure requirements established by Congress and the SEC to protect the national securities markets and investors. (source link)