What Changes In The Cryptocurrency Markets Could The SEC Fight Bring About?
The US Securities and Exchange Commission filed a new lawsuit against Coinbase on Tuesday, just 24 hours after filing one against Binance. The entire business model of the cryptocurrency sector, according to SEC Chairman Gary Gensler, is “built on non-compliance.”
We don’t need more digital currency, a top American securities regulator stated in a critical interview with CNBC. Then, using the hypothetical example of the New York Stock Exchange running a hedge fund, he claimed that cryptocurrency exchanges are “commingling a number of functions” that are unacceptable in traditional finance.
\u201cWe already have digital currency,\u201d he added. \u201cIt\u2019s called the U.S. dollar. It\u2019s called euro. It\u2019s called the yen. They\u2019re all digital now.\u201d Gensler’s comments came after the regulator today sued America\u2019s biggest crypto exchange Coinbase for not having registered as an exchange, clearing house and broker\u2014and allegedly selling unregistered securities.
Yesterday, the SEC also hit the world\u2019s biggest digital asset exchange Binance with 13 civil charges, alleging that the massive crypto company had a \u201cblatant disregard\u201d of American federal securities laws. The complaint alleges that Binance and its CEO Changpeng Zhao misused and commingled customers\u2019 funds.
The SEC has accelerated its crackdown on the cryptocurrency business since Garly Gensler took over as chairman in 2021. Since the FTX digital asset exchange abruptly failed in November over alleged criminal mismanagement, the pace has accelerated. Authorities claim that the exchange mixed customer funds with those of Alameda Research, a sibling trading company, in order to place riskier bets.
For allegedly selling unregistered securities, the SEC has investigated US cryptocurrency exchanges Kraken, Bittrex, and Coinbase this year. The crackdown, however, has alarmed some politicians, mainly Republicans, who contend that the stricter regulations and seeming lack of clarity will hinder innovation in the largest economy in the world. Rep. Warren Davidson was one of the lawmakers to criticise Gensler’s management of the SEC, and he later said that he intended to introduce legislation to address the issue.<\/p>\n","protected":false},"excerpt":{"rendered":"
What Changes In The Cryptocurrency Markets Could The SEC Fight Bring About?The US Securities and Exchange Commission filed a new lawsuit against Coinbase on Tuesday, just 24 hours after filing one against Binance. The entire business model of the cryptocurrency sector, according to SEC Chairman Gary Gensler, is “built on non-compliance.”We don’t need more digital …<\/p>\n","protected":false},"author":13,"featured_media":81464,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[40,6827,49,36],"tags":[7626,7344,6903,7323],"class_list":["post-84994","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-cryptocurrencies","category-daily-economic-reports","category-economic-reports","category-market-updates","tag-binance","tag-coinbase","tag-cryptocurrencies","tag-sec"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/84994","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=84994"}],"version-history":[{"count":2,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/84994\/revisions"}],"predecessor-version":[{"id":85000,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/84994\/revisions\/85000"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/81464"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=84994"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=84994"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=84994"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}