On Wednesday, the U.S. Securities and Exchange Commission (SEC) announced that Coinbase, a prominent cryptocurrency exchange, will have to defend itself against a lawsuit filed by the regulatory agency. The lawsuit alleges that Coinbase has been offering digital asset securities without registering them as required by federal securities laws.
The SEC's complaint centers around Coinbase's lending product, which the company had planned to launch in 2021. According to the SEC, Coinbase failed to provide the necessary information and assurances to ensure compliance with securities laws. The agency argues that the lending product qualifies as a security and should be subject to registration.
