The SEC has filed a lawsuit against Coinbase following up on its initial warning to the crypto exchange earlier this year when they sent a Wells Notice. The SEC claims that Coinbase violates SEC regulations by acting as a marketplace for unregistered securities. The SEC also claims that the company is acting as an illegal broker and exchange despite the company’s approval from the SEC in 2021 to go public. 

The lawsuit comes just one day after the SEC filed a separate claim against Binance for avoiding US regulations with its Binance.US branch which the SEC claims was used to shield the popular crypto exchange from legal action. 

Although both lawsuits are separate matters, it is clear that SEC Chairman Gary Gensler is finally taking action against these companies after refusing to provide adequate explanations for his reasoning. Gensler has also gone on record to say that “We don’t need more digital currency” despite teaching multiple courses on blockchain at MIT.