US sues Coinbase as crypto crackdown widens

The US has charged the biggest crypto trading platform in the country with operating illegally, widening its crackdown on the industry.

The Securities and Exchange Commission said Coinbase had acted as a broker, exchange and clearing agency for investments that are subject to SEC rules, without properly registering.

The financial regulator said that had allowed the firm to escape oversight, including inspection of its books.

Coinbase did not comment immediately.

In March, the company had warned that the SEC might take legal action against the firm.

It called the development disappointing and said it had been working with authorities to try to register, but that there was no clear path for crypto firms to do so.

The complaint against Coinbase comes as a day after the SEC sued Binance, the world's largest crypto trading platform, accusing the firm of mishandling customer funds and taking steps to evade US regulation.