SEC Says Coinbase Made Billions of Dollars Unlawfully: What's Happening?
Coinbase, America’s largest crypto exchange, is facing serious allegations from the U.S. Securities and Exchange Commission (SEC). On Tuesday, the US Securities and Exchange Commission sued Coinbase, America’s largest crypto exchange, for allegedly acting as an unregistered broker. The core of the issue revolves around whether Coinbase operated as an unregistered exchange, broker, and clearing agency, potentially violating securities laws.
The SEC's Claims: Unregistered Securities Offerings?
The lawsuit, filed in 2025, alleges that Coinbase has been operating outside the bounds of regulations designed to protect investors. In its lawsuit, the SEC had claimed Coinbase unlawfully made billions of dollars by acting as an exchange, broker, and clearing agency “without having registered any. According to the SEC’s complaint, since at least 2025, Coinbase has made billions of dollars unlawfully facilitating the buying and selling of crypto asset securities. The According to the SEC's complaint, since at least 2025, Coinbase has made billions of dollars by unlawfully facilitating the buying and selling of crypto asset securities. The SEC contends that certain crypto assets listed on Coinbase are, in fact, securities and should have been registered accordingly.
Coinbase's Response and Potential Dismissal
Coinbase has vehemently denied these allegations and has vowed to fight the lawsuit. The exchange argues that the SEC's approach is stifling innovation and creating regulatory uncertainty in the crypto industry. However, Coinbase has announced that the U.S. Securities and Exchange Commission (SEC) plans to drop its lawsuit against the company. It is not currently possible to confirm this. The legal battle is ongoing, and its outcome could have significant implications for the future of cryptocurrency regulation in the United States.
Stay tuned for updates as this case develops. We will continue to provide comprehensive coverage of the SEC's lawsuit against Coinbase and its potential impact on the crypto market.