Banking Groups Challenge SEC Cybersecurity Rule Following Coinbase Breach

Five major banking associations are urging the SEC to rescind its cybersecurity disclosure requirements, arguing that the rules conflict with confidential reporting protocols designed to protect financial infrastructure. The controversy stems from a recent $400 million breach at Coinbase, which the SEC’s rule WOULD require to be publicly disclosed within four business days. Financial institutions claim such disclosures could inadvertently aid ransomware attackers.

Banking Groups Urge SEC to Rescind Cybersecurity Disclosure Rule Following Coinbase Breach

Five major banking associations are challenging the SEC’s cybersecurity disclosure requirements, arguing they conflict with confidential reporting protocols designed to protect financial infrastructure. The rule mandates public disclosure of incidents like the recent $400 million Coinbase breach within four business days.

Financial institutions contend such disclosures aid ransomware attackers and hinder response efforts. The coalition—including SIFMA and the Bank Policy Institute—seeks removal of Item 1.05 from FORM 8-K, which governs investor notifications about cybersecurity events.

The debate highlights growing tension between regulatory transparency and operational security in digital finance. As crypto exchanges like Coinbase face increasing scrutiny, traditional financial players are pushing back against rules they claim expose systemic vulnerabilities.

Coinbase Investors File Suit Over Alleged Mishandling of User Data Leak

Coinbase faces a class action lawsuit from shareholders alleging the crypto exchange failed to disclose a data breach and regulatory violations promptly. The suit, filed in the US District Court for the Eastern District of Pennsylvania, claims these omissions led to significant financial losses for investors.

Lead plaintiff Brady Nessler argues Coinbase withheld critical risks, including a breach of a 2020 agreement by its UK subsidiary, CB Payments, and a December cyberattack compromising tens of thousands of users’ personal data. The company’s stock price dropped following these revelations.

Coinbase declined to comment on the allegations at press time. The lawsuit underscores growing scrutiny of crypto exchanges’ transparency and compliance practices as regulatory pressures mount industry-wide.

Coinbase, Cetus Exchanges Hacked: Security Concerns Highlight Need for Secure Wallets

Cryptocurrency exchanges Coinbase and Cetus faced significant security breaches within a week, reigniting concerns over digital asset safety. The incidents underscore the critical need for secure self-custody solutions like hardware wallets.

Cetus, a decentralized exchange, suffered a $223 million exploit on May 22 when attackers Leveraged a vulnerability in its automated market maker protocol. The Sui Network has since collaborated with the platform to freeze portions of the stolen assets.

Coinbase’s breach affected over 69,000 users through what appears to be a comparatively low-tech attack vector. While details remain limited, the incident at one of crypto’s most established custodians has rattled market confidence.

XRP Plunges Below $2.30 Amid Heavy Selling Pressure

Global economic tensions are rattling cryptocurrency markets, with XRP leading the downturn as it breaches the $2.30 support level. The token’s 15% intraday drop mirrors broader risk-off sentiment triggered by potential US tariffs on EU imports—a move threatening to escalate trade wars and dampen investor appetite for digital assets.

Technical charts reveal a precarious position: XRP now tests its 100-day moving average NEAR $2.25. A decisive close below this threshold could accelerate losses toward the $1.55-$1.90 liquidity zone, where algorithmic traders have clustered stop-loss orders.

Paradoxically, institutional demand appears undeterred. Volatility Shares’ new XRP futures ETF saw $28M inflows this week, while leveraged products recorded their highest open interest since January. "Wall Street is buying the dip," said Marex Solutions’ crypto derivatives desk, noting block trades exceeding 50M XRP on Coinbase Pro.