• The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Coinbase, the cryptocurrency exchange.
• Following the SEC’s lawsuit, Coinbase stocks have taken a hit on Tuesday with its shares falling by 20%.
• Despite this, Coinbase’s stocks remain high compared to January’s losses; its major shareholders include Cathie Wood’s ARK Invest, The Vanguard Group, Nikko Asset Management, BlackRock and Fidelity.
SEC Lawsuit Against Coinbase
The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Coinbase, the cryptocurrency exchange for unlegislated federal security practices and rule-breaking. This dispute created an impact on the crypto market and consequently caused a downfall of Coinbase shares on Tuesday.
Hit On Shares
Following the SEC’s lawsuit, Coinbase stocks have taken a hit on Tuesday with its shares falling by 20%, reaching $47.1 during the day as analyzed from records of TradingView platform. However, despite this decline in share prices, it is still holding up strong compared to January’s losses where it was recorded at $56.67 currently.
Major Shareholders
Coinbase’s major shareholders include Cathie Wood’s ARK Invest, The Vanguard Group, Nikko Asset Management, BlackRock and Fidelity among others. Furthermore, records of March say that ARK Invest has already made 301437 shares of Coinbase to its Innovation ETF while Robinhood Markets (HOOD) slid by 3% with it turning a $38M revenue on trades in Q1 2023 alone.
Impact On Crypto Market
The SEC’s lawsuit has created a bigger impact on the crypto market consequently leading to loss in value for cryptocurrencies like Bitcoin and Ethereum as well as other exchanges like Binance following suit after Robinhood restricted trading activities due to GameStop volatility issues back in January this year coinciding with Coinbase stock losses experienced then too .