MAGACOIN FINANCE: The Next XRP? This Emerging Cryptocurrency Has Already Raised $4.5 Million in Its Presale

After a prolonged and contentious legal battle with the U.S. Securities and Exchange Commission (SEC), Ripple recently settled the case with a notable $50 million fine

The U.S. Securities and Exchange Commission (SEC) sued cryptocurrency exchange Coinbase (NASDAQ:COIN) and industry veteran Charles Harris III for allegedly aiding and abetting the sale of unregistered securities, according to a lawsuit filed on Thursday.

The lawsuit, filed in a federal court in Washington, D.C., alleges that Coinbase "willfully aided, abetted, induced, and combined with intent to defraud and deceive" in the sale of unregistered securities.

The lawsuit arises from the SEC’s broader effort to police the cryptocurrency market and determine which digital assets should be classified as securities.

Earlier this year, the regulator sued several unnamed individuals for allegedly engaging in a scheme to defraud cryptocurrency investors via "coins" sold through a protocol called "Stellar."

The SEC claims that Harris, a former executive at cryptocurrency hedge fund Omnimaximal, helped to organize and manage the Stellar Foundation’s efforts to sell Stellar lumens tokens to U.S. investors.

The lawsuit also alleges that Coinbase, one of the largest cryptocurrency exchanges in the U.S., sold lumens, sol, and neo tokens to U.S. investors on its exchange platform without registering them with the regulator.

The lawsuit comes after the SEC sued several cryptocurrency firms in recent months over the sale of unregistered securities.

Earlier this year, the regulator sued major cryptocurrency exchange Binance and its CEO, Changpeng Zhao, for allegedly operating an unregistered exchange, selling unregistered securities, and violating federal anti-money laundering and commodities trading regulations.

The agency also sued TRM Labs, a cryptocurrency compliance firm, for allegedly aiding and abetting Binance in its alleged unlawful activities.

The SEC's lawsuit against Coinbase and Harris III is part of a broader crackdown on the cryptocurrency industry by the regulator.

In March, the SEC settled with Ripple Labs for $50 million over allegations that the company sold unregistered XRP tokens to U.S. investors.

The lawsuit against Coinbase and Harris III is expected to be closely watched by the cryptocurrency industry, as it could set a precedent for how the regulator will treat other digital assets in the future.