The Securities and Exchange Commission (SEC) has filed a lawsuit against Coinbase,
👉 Background: Coinbase is one of the largest cryptocurrency exchanges in the world and the largest in the US. In fact, in the last 24 hours alone, they've facilitated $1.3 billion worth of trades.
👉 What happened: But now, the Securities and Exchange Commission (SEC) has filed a lawsuit against Coinbase, claiming that the crypto giant has been acting as an 'unregistered broker' since 2019. After this, Coinbase's shares dropped more than 15%.
👉 What else: The Coinbase lawsuit comes one day after the SEC put 13 charges against Binance too.
💡Regulation is a double-edged sword in the crypto world. On the one hand, it is essential for the protection of crypto investors as well as ensuring integrity and trust in the market.
💡But on the other hand, too much regulation can stifle innovation. A classic example of this double-edged nature of regulation is the ride-sharing industry - Uber revolutionised transport but faced major pushback from the regs.
💡The challenge for regulators was... and still remains... how to strike a balance between innovation and protecting the interests of consumers, workers, and competition.
Sign up for Flux and join 100,000 members of the Flux family