Key Points:
The SEC charged Binance, the world’s biggest cryptocurrency exchange, on Monday with mishandling client cash and lying to US authorities and investors about its operations, in a broad case that has the potential to reshape the crypto landscape of power and riches.
The SEC’s action was the second time this year that federal officials accused Binance of violating regulations intended to safeguard US investors. Authorities have long seen the exchange, which claims to have $65 billion in average daily trading activity, as a significant target in their efforts to bring a crypto business based on an expressly anti-government mentality to heel.
The agency also took action against Coinbase, the largest US cryptocurrency exchange, after Chair Gary Gensler repeatedly asserted that most tokens are subject to his agency’s regulation and that large sections of the companies had broken the law. At the same time, US officials cautioned banks to avoid cryptocurrency due to possible threats to the financial system, making it more difficult for American residents to invest.
The SEC claimed in its lawsuit that several of the tokens available on Coinbase were securities, including SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO.
According to Kevin O’Brien, a partner at Ford O’Brien Landy and a former federal prosecutor, the SEC has never taken on such significant crypto players before.
“The two cases are different, but overlap and point in the same direction: the SEC’s increasingly aggressive campaign to bring cryptocurrencies under the jurisdiction of the federal securities laws. If the SEC prevails in either case, the cryptocurrency industry will be transformed,” O’Brien said.
The SEC said in a lawsuit filed in federal court in Manhattan that Coinbase has profited billions of dollars by acting as a middleman on cryptocurrency transactions since at least 2019 while skirting disclosure regulations designed to safeguard investors.
Coinbase’s general counsel, Paul Grewal, said in a statement that the firm would continue to operate as normal and has demonstrated dedication to compliance.
A day after slapping a lawsuit on crypto exchange Binance, the SEC requested the court to freeze the assets of Binance.US on Tuesday evening. The SEC also asked the judge to repatriate both fiat and crypto held by Binance.US’s customers.
The SEC seems like it’s playing Whac-A-Mole with crypto exchanges, according to Oanda senior market analyst Ed Moya, and since most exchanges provide a variety of currencies that function on blockchain protocols targeted by regulators, it appears like this is only the beginning.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Harold
Coincu News
The hype around PropiChain’s token presale is due to its innovative integration of NFTs and…
UK pension fund Cartwright advised the country's first defined benefit pension fund to allocate 3%…
a16z and Coinbase have pledged substantial funds to crypto PAC Fairshake, aiming to support crypto-friendly…
Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) dominate the crypto market, but experts warn that…
Discover the future as the Dogecoin price aims for a $0.7 comeback and discover why…
Willemstad, Curaçao, 4th November 2024, Chainwire
This website uses cookies.