According to Bloomberg News, Cathie Wood’s Ark Investment Management LLC has increased its stake in Coinbase after the US Securities and Exchange Commission (SEC) accused the exchange of operating unlawfully. The Ark Innovation ETF and two other funds bought 419,324 shares of Coinbase on Tuesday. Ark Invest has been bullish on Coinbase, purchasing an additional $8.5 million in COIN shares on May 1 and buying 129,604 more for its ARK Innovation ETF.

SEC Accusations Against Coinbase and Binance

The SEC charged Coinbase on Tuesday with operating its platform without registering it as an exchange, broker, or clearing agency. The regulator also accused the US crypto exchange of the unregistered offer and sale of securities related to its staking-as-a-service program. The SEC named 13 cryptocurrencies as securities in the complaint, including SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO. Separately, the SEC filed 13 charges against crypto exchange Binance and its CEO Changpeng Zhao for operating an unregistered exchange and for misrepresentations about its oversight and control over Binance.US.

Price of Coinbase Shares Slump

The price of Coinbase shares fell to as low as $51.61 on Tuesday, according to Nasdaq, following news of the SEC accusations. However, the price has since risen to just over $53 as of Wednesday afternoon.

SEC Chair Calls on Crypto Firms to Register

SEC Chair Gary Gensler has called on crypto firms to register with the SEC. He recently said that exchanges tend to be “rife with conflicts” and that conversations with many crypto firms have been constructive, but it is time for them to comply. Gensler made these comments following the SEC’s charges against Binance and Coinbase. On Tuesday evening, the agency filed an emergency motion seeking a temporary restraining order to freeze assets of the Binance.US platform.

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