SEC has filed yet another suit against a crypto company. This time against the biggest of them, Binance. I am not sure if this is another result of the whole FTX situation or something that has been in the works for a longer time. But let us take a look at what we know about it.

More securities, according to SEC

In the suit, the SEC has now added 10 more cryptocurrencies to their ever-growing list of securities. The 10 new are as follows: BNB $BNB, Binance USD $BUSD, Solana $SOL, Cardano $ADA, Polygon $MATIC, Cosmos $ATOM, The Sandbox $SAND, Decentraland $MANA, Axie Infinity $AXS and COTI $COTI. These 10 new additions put the SEC´s list of cryptocurrencies they classify as assets at a total of 61.

Judging by this it looks to me that the SEC has taken a more aggressive stance against crypto after the FTX crash. As far as I can tell non of the new additions to the list is new, but they have been around for a few years at least. Why were these not included with any of the previous additions to the list? To me it looks like the SEC, either of its own accord or from the top, now has taken a more aggressive approach against cryptocurrencies. And I expect to see more cryptocurrencies added to this list, in an effort from the SEC to assert their right to regulate the crypto market. Especially now when one would expect the courts to be slightly bias vs crypto. With all the recent billion-dollar scams and ponzi schemes, I can't blame them.

Then we have the whole problem with the fact that you can shop and pick the court you want to file your suit in. Meaning you can more or less already pick a judge that has a similar outlook as you. It is definitely looking like a steep uphill battle for Binance, and indeed, any other crypto entities being sued. As Obi-Wan put it "It's over Anakin, I have the high ground".

SEC vs Binance

This suit appears to have been one that many claim to have seen coming. Apparently there where some writing on a wall or something to that accord. Sadly I have not got access to those always where people write these things. Cory Klippsten, CEO of financial firm Swan Bitcoin had this to say about the suit in question.

These practices of Binance have essentially been open secrets, so no one who operates in the space will be surprised by any of the charges. -Cory Klippsten

While CZ, Binance CEO, has made a few tweets about the matter. The one I think is the most interesting was the one he put out earlier today; "If you have to pick a fight with everyone, maybe you are the one at fault". It is a sentiment I have to say I share. And I think if this whole charade continues for much longer the whole crypto market will suffer. Simply because there is too much US money tied up in crypto. And if it would all be removed in a short time. I would argue it can be a death blow to the entire industry. As it most likely would resemble something between a rug pull and a bank run. But then again, that might be the goal of this whole crypto witch hunt.

While I have to say I did find the tweet made by the SEC very funny. On the other hand, I am also a bit torn. As I don't really think it is appropriate behavior from a branch of the government. But this might entirely be my preference and bias showing.

Regarding the suit, the SEC has filed 13 charges against Binance, its entities, and the founder Changpeng Zhao, CZ. Among the charges being brought forward are operating unregistered exchanges, broker-dealers, and clearing agencies; misrepresenting trading controls and oversight on the Binance.US platform; and the unregistered offer and sale of securities. But the SEC also alleges that Binance has failed to prevent US customers from accessing Binance.com, doing so by creating BAM Management and BAM Trading. Through those two entities, CZ allowed access to Binance.com for high valued customers. This is where the message used in the SEC tweet comes from.

The effects of the suit

And the first effects of the SEC´s filing did not wait long before they reared their ugly head. Bitcoin took a massive dive from around $27,000 to about $25,000. And $BNB took a similar dive, a bit more surprising tho was that it was not a bigger dive than what Bitcoin took. Seeing that $BNB is Binance's main coin and the two more or less are intertwined. The other affected cryptocurrencies all took a similar big dip in terms of percentages, 7-9%.

But the effects of the suit were felt not only in crypto directly. But for companies as well. Coinbase saw its stock take a bit similar dive and fell around 12%. This just shows the possible effects this suit can have on the industry. Now we just have to cross our fingers and hope my doom and gloom prediction above does not come to fruition.

There is even a rumor circulating that CZ has stepped down as CEO and been replaced by Richard Teng. Teng who is working overseeing regional markets outside the U.S. But I find nothing to substantiate this claim. It does however look like CZ is grooming Teng to eventually be his replacement. But so far that day has not come.

Oh, I almost forgot. The SEC also filed a suit against Colinbase earlier today. Presumably for allowing its users to trade the now 10 cryptocurrencies they claim are securities. Among the charges filed against Coinbase are: Operating as an Unregistered Securities Exchange, Broker, and Clearing Agency. But also charged for the unregistered offer and sale of securities in connection with its staking-as-a-service program. 

I Cant really say that I agree with the methods of how the SEC does things. But the suit against Binance appears to be something that has had in the works for some time. But the suit was filed today against Coinbase. If it indeed is for trading the 10 now listed securities, formerly cryptocurrencies. I do not see how any part of the government can work like that. Decide something, then just sue companies without giving them any time to comply with the new regulations. 

If you want to read the SEC press releases in there full, a link to both of them can be found below.

What is your thought on this whole deal? Is this something Binance and CZ long had coming? Or is this just the next step in the US war on crypto? Also, what do you think will be the repercussions if the SEC wins these suits? Please share your thoughts in the comment section below.

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