Breaking: Coinbase targeted by state security regulators concurrent to SEC lawsuit

According to a statement published by the Alabama Securities Commission on June 6, a multi-state task force comprising of state regulators from Alabama, California, Illinois, Kentucky, Maryland, New Jersey, South Caroline, Vermont, Washington, and Wisconsin have issued a Show Cause Order against cryptocurrency exchange Coinbase. The order alleges that “Coinbase violates the securities law by offering its staking rewards program accounts to Alabama residents without a registration to offer or sell these securities.”

In particular, the order gives Coinbase 28 days to show cause why they should not be directed to cease and desist from selling unregistered securities in Alabama. The same day, Coinbase received a lawsuit notice from the U.S. Securities and Exchange Commission alleging the offering of unregistered securities.

This is a breaking news story and will be updated accordingly.