SEC Prepares for Lawsuit Against Coinbase
Experts believe that the next target of the Securities and Exchange Commission (SEC) is likely to be the largest U.S. cryptocurrency exchange Coinbase.
The U.S. regulator’s lawsuit against Binance will probably not be the last. Coinbase may become the SEC’s next target. This is reported by Business Insider, citing a note from Mark Palmer, Analyst at Berenberg.
According to the expert, some of the details of the lawsuit filed by the SEC against Binance have common features with the previously filed lawsuits against the cryptocurrency exchanges Kraken and Bittrex. These developments will likely be used to prepare a lawsuit against Coinbase, the biggest crypto trading platform in the United States.
Coinbase had already received a Wells notice from the SEC in March, indicating possible enforcement action by the regulator. The SEC’s claims boiled down to the listing of assets that could potentially be considered unregistered securities.
In Mark Palmer’s opinion, Coinbase is at risk of losing 37% of its net profits if it goes into litigation with the SEC, and the company’s future will depend on management’s ability to quickly change the business model and geography of the platform.
The SEC officials have consistently sued major crypto exchanges operating in the United States in 2023. The practice has already increased regulatory uncertainty and provoked the attempts of American lawmakers to define more clearly the scope of the SEC’s authority concerning the cryptocurrency market.