Crypto asset company Coinbase and its parent company have 28 days to show why they should be allowed to continue to business in Alabama.

The Alabama Securities Commission has issued a show cause order to the company as part of a multi-state task force of 10 state securities regulators, including California, Illinois, Kentucky, Maryland, New Jersey, South Carolina, Vermont, Washington and Wisconsin.

The action comes at the same time that the Securities and Exchange Commission sued Coinbase in New York federal court, contending that the company was acting as an unregistered broker and exchange, according to CNBC. Shares fell 22% in premarket trading Tuesday.

According to ASC Director Amanda Senn, the order is about protecting Alabama consumers and investors.

“This action is another step toward ensuring that investors in crypto asset products are offered the same protections under our laws and are fully aware of the risks involved in these investments,” Senn said.

The ASC estimates more than 33,000 Coinbase accounts are currently held by Alabama investors.

The Alabama Show Cause Order alleges that Coinbase violates the securities law by offering its staking rewards program accounts to Alabama residents without a registration to offer or sell these securities. Staking occurs when investors lock their crypto assets for a set period to help support the operation of a blockchain, with the promise of more crypto assets.

According to the ASC, under Coinbase’s staking rewards program, investors deposit crypto assets with Coinbase, which then facilitates the staking of these assets on the blockchain. The program advertises a return of up to 6% on investments. Coinbase pools investors’ crypto assets and employs a team to generate staking rewards. Coinbase takes a cut of those profits.

The ASC action does not prohibit Coinbase from offering staking as a service, only so long as it complies with Alabama’s laws.

According to the ASC, Coinbase’s nearly 3.5 million staking rewards program accounts nationwide are not insured by the Federal Deposit Insurance Corporation (FDIC) or Securities Investor Protection Corporation (SIPC).

Investors are encouraged to contact ASC to confirm the registration status of a staking rewards program before investing their money.