(WBBM NEWSRADIO) – Illinois state government has joined nine other states in suing Coinbase, the biggest cryptocurrency trading platform in the country, and now the U.S. Securities and Exchange Commission is also suing the crypto firm.
Essentially, the lawsuits by the feds and the states say Coinbase broke securities laws by not registering as a broker.
The Illinois Secretary of State's Office says registering would give potential investors in cryptocurrency a chance to evaluate the risks.
Secretary of State Alexi Giannoulias said in a statement that the lawsuit against Coinbase "will protect consumers and investors to ensure they can make informed and safe decisions in Illinois and across the nation."
His office says that of Coinbase’s nearly 3.5 million accounts holding staking offerings, more than 140,000 were issued to Illinois investors.
Coinbase offered this response Tuesday: "Following the SEC’s complaint, several state securities regulators have taken steps related to our staking services, which we are currently reviewing, and we expect to have productive conversations with those regulators. We are confident that our staking services are not securities under federal or state law."
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