Shares of Coinbase fell 10.3% after news that the United States Securities and Exchange Commission (SEC) was suing Binance for alleged violations of federal securities laws on the evening of June 5.
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Shares of Coinbase fell more than 5% shortly after the news broke and were down 10% at press time.
Meanwhile, the bitcoin (BTC) price has dropped more than 5% to below $26000. Shares of MicroStrategy (MSTR), which holds a large amount of Bitcoin on its balance sheet, fell nearly 9%.
![Shares of Coinbase fell 6% after news that the Securities and Exchange Commission (SEC) sued Binance. (TradingView)](https://www.bit4me.info/wp-content/uploads/2023/06/E4RG47Q5MREMLOGRBB4RHQLY64.jpg)
The SEC is accusing Binance of offering unregistered crypto securities including BNB and BUSD to the market and mixing customer funds among other allegations.
In March, Coinbase itself received a warning from the SEC that it may soon receive enforcement action regarding the listing of tokens deemed by the SEC to be unregistered securities.