Coinbase’s stock plunged by 21% on Tuesday following a lawsuit filed by the Securities and Exchange Commission (SEC). The SEC alleges that Coinbase operates as an unregistered crypto exchange and offers unregistered securities to its users. The lawsuit follows a similar action against Binance, which was also sued by the SEC for operating an unregistered crypto exchange.

The SEC’s lawsuit against Coinbase also includes allegations related to the company’s staking yield program, which the SEC claims is an unregistered sale and offering of securities to its users. SEC Chairman Gary Gensler stated, “Coinbase’s alleged failures deprive investors of critical protections, including rulebooks that prevent fraud and manipulation, proper disclosure, safeguards against conflicts of interest, and routine inspection by the SEC.”

This enforcement action comes after months of investigation by the SEC into Coinbase’s operations. The company received a Wells Notice from the agency in March, suggesting that an enforcement action was imminent. Other crypto stocks, including MicroStrategy and Riot Platforms, also experienced sell-offs on Tuesday. Meanwhile, crypto tokens like Bitcoin and Ether also saw a decline of about 1%.

This news has had a significant impact on Coinbase’s stock, which was trading at $47.97 at 9:42 am ET. The stock had already fallen by 9% the previous day following the announcement of the SEC’s suit against Binance.