In a 101-page lawsuit, Coinbase, the largest cryptocurrency exchange in the United States, has been accused by the Securities and Exchange Commission (SEC) of allowing securities, including SOL, ADA, and MATIC, to be traded on its platform without proper registration.

The SEC’s lawsuit comes just one day after similar charges were filed against Binance, another major cryptocurrency exchange. According to the agency, Coinbase has failed to register as a broker, national securities exchange, or clearing agency, despite performing the functions of all three entities.

The allegations against Coinbase include violating securities laws by listing assets that meet the criteria of the Howey Test, despite claiming to prioritize legal compliance. The SEC specifically named large-cap crypto assets such as SOL, ADA, and MATIC as the securities in question.

The commission accused Coinbase of prioritizing profits over investors’ interests and compliance with securities market regulations. Additionally, the SEC claimed that Coinbase failed to register its staking-as-a-service product, depriving investors of important information about the program. Coinbase has previously argued that staking products are not securities.

As a remedy, the SEC is seeking for Coinbase to disgorge “it’s allegedly ill-gotten gains and pay prejudgment interest on those funds”.