Former CFTC Chairman Criticizes SEC’s Lawsuit Against Exchanges As Boring

Key Points:

• The former Chairman of the CFTC called the SEC’s attack on exchanges “boring.”
• He emphasized that the ancient Bitcoin players did not need to exchange for a long time.
• Investors are still focused on the outcome of the lawsuit between the SEC and the exchanges.

Christopher Giancarlo, the former Chairman of the United States Commodities Futures Trading Commission (CFTC), has commented on the Securities and Exchange Commission’s (SEC) much-discussed crackdown on the Coinbase exchange.

Giancarlo has long been pro-crypto innovation as a former CFTC Chairman, and his support post-office has earned him the title “Crypto Dad.”

Although not explicitly commenting on whether the SEC will prevail in the litigation it has filed against these exchanges, the opinion is that the crackdown, if successful, would just shift the timescale for which blockchain and cryptocurrencies will dominate the administration of value.

Giancarlo mirrored the views of crypto advocate James Harper, who said that although the market regulator’s enforcement action is necessary, the strategy is “boring.”

In support of this position, Harper emphasized how ancient Bitcoiners do not need an exchange in the long run, particularly when transactional possibilities are built into the utility for which they keep the asset.

The chances of the SEC winning in its case against Coinbase and Binance are now being debated in the community, with many experts feeling the regulator’s crackdown is an overreach of its regulatory authority. The platforms are eager to defend their claims in court, following in the footsteps of Ripple Labs, which has been fighting the SEC for more than two and a half years.

Thinking about events and the expected price fluctuations surrounding them is one of the more difficult components of investing. What happened in the cryptocurrency market when the SEC initiated action against Binance and Coinbase was a prime example.

Since Coinbase had previously gotten a Wells Notice, more regulatory action against the company was arguably more likely than against Binance. Consider the enforcement case against Binance, a company with no recognized physical headquarters, which makes it unclear how the SEC would examine it.

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.

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Harold

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