At this point, everyone knows now that Binance has been hit with 13 charges by the SEC. It really should not come as a surprise to anyone as issues and controversy have for better and worse plagued the exchange for years now and in some situations, they have even settled with regulators for allowing transactions to occur on their exchange. One of the biggest issues that have continued to face Binance and CZ is that high-level people intimately involved in Binance or its other companies have admitted both under oath and in evidence collected that they were at a minimum targeting the thinnest of edges to see how far they could make it bend.
Even with this evidence and most importantly the statements that have been made both publically and under oath is the way that the SEC has navigated this which it is safe to say once more has been done extremely poorly. It is this poor handling that Congress has been very quick to call out SEC Chair Gensler on. Between bank failures under his watch and crypto market shocks issues are clearly visible right and left. Well, he literally tanked a whole industry today and this hurts everyone from the small HODLER to the Institutional Client. Given how there has been growing bipartisan support for the crypto industry this is not exactly going to help Gensler out with Congress while he takes a public beating from everyone else.
It really plays into House Republicans' plans though as late last week, they released a 166-page bill that in a quick summary tells the SEC to keep their hands off crypto except for in very limited and specific situations. The regulation of crypto is moved to the Commodities Future Trading Commission or CFTC the government agency that I think is best structured for Crypto. That's not to say it is a perfect match but between the two the CFTC is the better-designed agency for crypto and its 24/7 operating structure. Within the bill the CFTC will be expanded/built out as currently it is extremely small and only deals in future contracts like coffee, rice, corn, etc. and the head of the agency has requested Congress give it additional funding because of their small workforce.
Now it does not mean that the government is going on a crazy IRS $80 billion spree but this legislation will help build up a workforce that would create a common sense regulatory structure. Cleaning this up will create a regulatory environment for additional investment and help prevent capital flight abroad. Bad actors will be able to clearly and easily be held accountable instead of this confusing foggy mess that we are currently stuck in.
Binance has admittedly broken laws and regulations and needs to be held accountable. Current laws and their utilization or lack thereof have created a confusing mess for all involved. Cleaning it up makes it much more simple and thus being able to hold people accountable in a quick and timely fashion will be vital for the industry going forward and luckily is something that Congress is trying to solve. With the SEC pulling stupid moves as they are it just makes them that much easier of a target/fixer-upper for Congress.
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