As you may have heard, the Security and Exchange Commission (SEC) has today targeted another crypto giant : Coinbase, as if attacking Binance was not enough
The events
The Securities and Exchange Commission sued the crypto exchange Coinbase in New York federal court on Tuesday morning, alleging that the company was acting as an unregistered broker and exchange and demanding that the company be “permanently restrained and enjoined” from continuing to do so.
It added: “By collapsing these functions into a single platform and failing to register with the SEC as to any of the three functions, and not having qualified for any applicable exemptions from registration, Coinbase has for years defied the regulatory structures and evaded the disclosure requirements that Congress and the SEC have constructed for the protection of the national securities markets and investors.”
The reactions
"The consequence of this news was quickly felt in the markets as the shares of the company led by Brian Armstrong lost 15% shortly after the SEC announcement.
Source : Tradingview
Brian Armstrong also reacted on twitter :
In short, they are defending the cryptocurrency industry in court to obtain clear rules. They criticize the SEC's regulatory enforcement approach and highlight efforts by Congress and other countries to establish clear regulations. They express confidence in their legal position.
The CEO of Binance, Changpeng Zhao also expressed his feelings about the case on twitter :
Note that nearly $780 million has been withdrawn from Binance in the past 24 hours following the SEC's lawsuit against the exchange platform, according to data compiled by the analytics company Nansen.
Conclusion :
This case could pave the way for similar litigation between the SEC and other cryptocurrency companies like Kucoin. The decisions and clarifications made by the courts in this case could have implications for ongoing disputes and establish important legal precedents for the industry. It may also influence regulatory approaches taken by other jurisdictions and the establishment of international standards in the cryptocurrency field.
Thumbnail source : techblog.gr
As always, thank you for reading
