SEC Claims Coinbase Unregistered Since 2019, yet Allowed Its IPO in 2021

In the lawsuit the U.S. Securities and Exchange Commission (SEC) filed against Coinbase, the regulator claimed that Coinbase has operated as an unregistered national securities exchange, broker, and clearing agency "since at least 2019". However, Coinbase did its IPO in April 2021, and became the first crypto company in the U.S. to go public.

Miles Deutscher, a crypto analyst, commented on Twitter, "so you're telling me that the SEC let an 'unregistered broker' IPO - after carrying out due diligence? Well done Gary (SEC Chair)."

Adam Cochran, partner at CEHV, said, "when the US government sells seized crypto assets, they use Coinbase. According to the SEC, the US government is using an illegal unregistered securities exchange..."