Coinbase Faces Multi-State Regulatory Scrutiny: Impact on Crypto Space and Innovation

Cryptocurrency exchange Coinbase faces regulatory scrutiny, receiving a Show Cause Order from the Alabama Securities and Exchange Commission and ten other states for allegedly violating securities laws. The SEC accuses Coinbase of acting as an unregistered exchange, broker, and clearing agency, offering staking programs without proper registration. Increased regulation could foster transparency, but also impact innovation and investment in the crypto sector.