The SEC Intends To “Shut Off” Crypto, According To Charles Gasparino

Key Points:

• Several securities attorneys and former SEC officials, according to Gasparino, believe the government is seeking to “shut off” the majority of cryptocurrencies of any type in the aftermath of the FTX meltdown.
• With criticism on the increase, industry experts are planning for worst-case scenarios in order to safeguard their consumers and goods against odd SEC measures.

According to Charles Gasparino, the SEC’s newfound interest in crypto is spurred by FTX.

According to Gasparino, believe the government is seeking to “shut off” the majority of cryptocurrencies of any type in the aftermath of the FTX meltdown. Charles Gasparino, Senior Correspondent and Correspondent for Fox Business Network, expressed his thoughts on the US Securities and Exchange Commission’s (SEC) current attitude on the crypto environment.

The community is still outraged by the SEC’s role in the FTX exchange’s undetected fraud, which contributed to its final bankruptcy. It is unclear whether the government is exploiting the present assault on cryptocurrency to satisfy public opinion, with Gasparino revealing a number of Wells Announcements were issued with the purpose to sue. The regulator’s forward-thinking approach was demonstrated when it penalized Kraken exchange $30 million for offering staking services to its users.

While the SEC’s action had little immediate effect on the exchange’s trading volume, Kraken was fast to comply and stopped selling this service. Another harsh action was recently taken by the regulator against Paxos, the issuer of the stablecoin Binance USD (BUSD). With criticism on the increase, industry experts are planning for worst-case scenarios in order to safeguard their consumers and goods against odd SEC measures.

While Paxos has declared that it disagrees with the regulator’s classification of stablecoin BUSD as a security, the business has stated that it is prepared to face legal action if this occurs. Coinbase CEO Brian Armstrong holds a similar viewpoint, stating that they are willing to go to court if the SEC takes any action against their staking business.

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