Dramatic Development: SEC Sues Coinbase and Binance, Aiming to Transform the Crypto Market
Crucial for the Crypto Industry: Image by TipRanks
SEC Sues Coinbase and Binance: America's securities regulator filed a lawsuit against cryptocurrency platform Coinbase yesterday, just a day after suing the world's largest crypto exchange, Binance.
The SEC accuses Coinbase of operating as a middleman in crypto transactions since at least 2019, evading disclosure requirements meant to protect investors. According to the SEC, Coinbase traded at least 13 crypto assets that qualify as securities and should have been registered.
The lawsuit has the potential to transform the crypto market by asserting the SEC's jurisdiction over the industry. Coinbase has already experienced net outflows of approximately $1.28 billion following the lawsuit.
Meanwhile, the SEC accuses Binance and its CEO, Changpeng Zhao, of operating a "web of deception." Binance is defending against the lawsuit, emphasizing that the SEC is withholding clarity from the crypto sector. Experts view these cases as part of the SEC's increasing regulatory efforts targeting cryptocurrency companies. The implications could be far-reaching and profoundly impact the crypto industry.
