The US Securities and Exchange Commission (SEC) has filed a lawsuit against Coinbase, accusing the crypto exchange of operating as a broker, national securities exchange, and clearing agency without proper registration.

The lawsuit also claims that several crypto assets offered on Coinbase, including Solana, Cardano, and Polygon, are unregistered securities. Following the announcement, Coinbase's stock (COIN) dropped over 18% in pre-market trading.

This legal action against Coinbase and Binance, as well as SEC Chair Gary Gensler's call for increased oversight in the crypto industry, may signal a broader regulatory trend.