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SEC plans lawsuit against Coinbase, stock slides

Yahoo Finance Live’s Julie Hyman discusses news that the SEC is planning to file a lawsuit against Coinbase.

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JULIE HYMAN: Let's talk Coinbase. Shares there are sliding in premarket trading on news that the Securities and Exchange Commission is threatening a potential lawsuit against the largest US crypto exchange. The enforcement related to alleged violations of federal securities law. That's according to a filing out on Wednesday.

Federal regulators are also heading for Hollywood. Several celebrities, including Lindsay Lohan and Jake Paul, have been charged with illegally promoting cryptocurrencies. We're going to break down more of what all this means not just for Coinbase but for the broader crypto space coming up.