Coinbase (COIN) shares dropped by 10.3% following news that the Securities and Exchange Commission (SEC) had filed a lawsuit against Binance for allegedly violating federal securities law. The stock initially fell by over 5% upon the release of the filing and continued to decline. Bitcoin (BTC) also fell by more than 5% to below $26,000, while MicroStrategy (MSTR) shares, which hold a significant amount of bitcoin on its balance sheet, fell by almost 9%. The SEC is accusing Binance of offering unregistered securities and staking services to the public, among other allegations, as U.S. lawmakers increase their enforcement actions against crypto companies. In March, Coinbase received a warning from the SEC that it may face enforcement action related to its listing of potential unregistered securities. The exchange has since focused on expanding its presence in Canada, which it believes has clearer rules for crypto firms than the U.S.