"The SEC is not resting, just looking for an article with Binance and now Coinbase as well."
Coinbase (COIN) stock price plunged 13% as 10 state regulators joined the United States (US) Securities and Exchange Commission (SEC) in filing a lawsuit against the giant cryptocurrency exchange.
Reportedly, the Alabama Securities Commission (ASC) issued a show cause order to Coinbase, where it has 28 days to show why they are not required to stop selling unregistered securities in the state.
It is widely known that the action was carried out by a multi-state task force, including regulators in Alabama, California, Illinois, Kentucky, Maryland, New Jersey, South Carolina, Vermont, Washington and Wisconsin.
This is because state regulators alleged that Coinbase violated US securities laws by offering a staking reward program to Alabama residents without registering with them.
Shortly after suing Binance and Chief Executive Officer (CEO) Changpeng Zhao (CZ), the SEC found that Coinbase was subsequently operating illegally and failing to comply with its rules.
It is already known that US SEC Chairman Gary Gensler who used his power to bring down the market has sued Coinbase while the digital asset exchange launched a campaign to get clarity on crypto regulations.
As of this writing, COIN's share price has plunged as high as $51.63 in the last 24 hours and slipped around 20% in the previous day.
