![]() This is something you don't see in traditional finance, and it's a model of which Gensler is skeptical. The lawsuits are also threatening to create a lot of uncertainty and further erode confidence in the entire sector.Ĭoinbase and Binance join a list of crypto companies against which the SEC has taken action, including Kraken, Genesis and Gemini.īut Coinbase and Binance don't just run exchanges, they also operate as brokerages and clearing agencies. An ongoing area of focus continues to be the classification of cryptos and DeFi products. Securities and Exchange Commission to settle charges relating to her promotion of the EthereumMax digital token. A number of exchanges have fallen under the watchful eye of the SEC in recent months. Of the nearly 10,000 tokens in the crypto market, I believe the vast majority are securities, SEC chair Gary Gensler said in a. "Can it really afford to just fight this out, or does it have an incentive to try to come up with a settlement?" What this means for the crypto world Reality TV star Kim Kardashian has paid 1.26 million to the U.S. And the head of the SEC says most cryptocurrencies pass it. "This is going to affect people's attitude toward trading, and Coinbase is going to have to think about that," says Massad. ![]() And indeed, in the days since these lawsuits were announced, there have been significant outflows from Coinbase's and Binance's exchanges. The longer this drags out, the more it could color how crypto investors see these two companies. In many ways, this is an existential fight for these companies.īinance, perhaps, faces the most serious allegations, including that the exchange and its CEO, Changpeng Zhao misled investors about the exchange's ability to detect market manipulation, and it misused customer funds.īusiness Why Wall Street's top cop thinks it's time to get tough "I think these cases will be fundamental to the shape of crypto regulation," says Timothy Massad, who is the former chairman of the CFTC. If the SEC prevails in the courts, it could potentially force crypto companies to register with the SEC, which would be a sea change. What many crypto companies want are new rules of the road that are crypto-specific. ![]() By design, crypto is supposed to operate outside of the traditional financial system. That's something that crypto companies have fought tooth and nail. Binance and Zhao face a barrage of lawsuits from the SEC. ![]() Binance founder and CEO Changpeng Zhao poses during an interview at a technology startups and innovation fair in Paris on May 16, 2022. ![]()
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