The Securities Exchange Commission is ramping up its crackdown on crypto, filing a lawsuit against Coinbase ( NASDAQ: COIN ) just a day after suing Binance . While the allegations are different - Coinbase centers around the registration of securities and market functions, while Binance includes fraud and efforts to evade - the two are similar in other ways. The cases should provide more clarity around crypto rules, as well as the scope and authority of regulators over crypto platforms. Bigger picture: In the early innings of the crypto experiment or revolution (depending on who you ask), digital asset firms took a similar approach to traditional companies that make waves with innovation. In some respects, it was like the emergence of gig workers, or the gig economy, which steamrolled through tax and labor laws until things were eventually regulated. A similar view - that regulation would bend to innovation - was adopted early on in the crypto craze, but more recently it has become apparent that this is not going to happen. "The investing public has the benefit of U.S. securities laws, crypto should be no different, and these platforms and intermediaries need to come into compliance," SEC Chair Gary Gensler declared. "Frankly, the public should really be more careful... We don't need more digital currency. We already have digital currency. It's called the U.S. dollar. It's called the euro or it's called the yen, they're all digital right now." Back in March, Coinbase ( COIN ) received a Wells notice for a potential enforcement action from the SEC, though the company said the agency refused to respond to its proposals regarding registration. In April, Coinbase ( COIN ) even sued the SEC seeking to force a response on its rulemaking petition, while the CFTC subsequently accused Binance of breaching certain trading and derivatives rules . The latest lawsuits cement regulators' jurisdiction over the crypto industry using federal securities laws and investor protections, instead of an expansion of the rulebook or updated framework strongly sought out by crypto proponents. Outlook: Investors sent shares of Coinbase ( COIN ) plunging 12% on Tuesday after considerable foreshadowing in the months prior. In the article, The Downtrend Could Be Stronger Than You Think , SA Investing Group Leader Danil Sereda called the extended slump - following the SEC enforcement action in March - and followed up with another piece Coinbase Stock: Don't Fight The SEC at the beginning of May. Coinbase's woes don't end with legal trouble. The company recently reported its fifth consecutive quarterly loss , while suffering nearly $1.3B of net customer outflows following yesterday's lawsuit. Overall, the stock is down 80% since its direct listing on the Nasdaq in April 2021. Popular crypto names: Bitcoin ( BTC-USD ), Ethereum ( ETH-USD ), Binance Coin ( BNB-USD ), Monero ( XMR-USD ), Litecoin ( LTC-USD ), Solana ( SOL-USD ), Cardano ( ADA-USD ), XRP ( XRP-USD ) and Dogecoin ( DOGE-USD ). Related tickers: MicroStrategy ( MSTR ), Marathon Digital ( MARA ), Riot Blockchain ( RIOT ) and Robinhood Markets ( HOOD ). More on crypto regulation SEC warns of 'significant' risk of loss for crypto investors Gensler defends crypto regulation at House oversight hearing G7 said to promote tougher crypto rules amid global banking drama
