June 6th marks the day when Coinbase was sued by the Securities and Exchange Commission (SEC) for allegedly operating an illegal securities trading platform.
The regulator had already shown its regulatory might by also filing a lawsuit against Binance for allegedly trading several coins that the SEC considers securities, including Matic, Ada, Fil, and others, in a precedent that affected the entire cryptocurrency market. As if that wasn't enough, today the SEC filed a court request to freeze all assets of Binance US and CZ in American territory.
It is clear that the regulator is at war with the crypto industry and shows no signs of slowing down the crackdown, revealing its destructive stance towards the crypto industry in the United States. The question remains, who will be the next victim of the SEC?
However, Coinbase, through its CEO Brian Armstrong, made it known that despite being sued by the regulator, the company will not back down and will go to court to contest the lawsuit. This battle will be tough, with various aspects to consider from both sides. Personally, I believe that Coinbase has ammunition for the fight, let's see why:
The lawsuit brought by the SEC against Coinbase alleges that the exchange has been operating illegally as a broker since 2019. However, in 2021, the regulator studied and approved Coinbase's request to become a public company, even allowing it to be listed on the NASDAQ exchange.
Another aspect is related to statements made by the current president of the SEC during a hearing before Congress, where he stated that under the current securities law, the commission does not have the power to regulate cryptocurrency exchanges without the approval of the Senate, rendering all the actions taken by the SEC thus far a massive misuse of illegal power.
And that's not all! When a US judge approved the release of documents related to the Hinman case, the XRP case, in favor of the company against the SEC, it also paved the way for Coinbase to request that conversations and information shared by Gary Gensler regarding the exchange be made public. This would allow us to truly understand what the SEC chairman thinks about the crypto market, making him a key witness in Coinbase's case.
However, the regulator also has cards up its sleeve. As an authority in the securities field and due to the absence of clear regulations for the cryptocurrency industry, it can rely on existing market laws to justify its actions. Therefore, we are witnessing a clash of titans that will undoubtedly take a long time to conclude, with both sides using legal means to defend their causes.
To conclude, the SEC shows no genuine interest in the cryptocurrency market, nor does it protect investors as it often claims. If that were true, the regulator would have long established clear laws to regulate the cryptocurrency market and would be more transparent in how it classifies securities. This crackdown on Binance and Coinbase serves as a loud warning: "We are coming for you, no matter where you are, and all tokens are considered securities until I say otherwise."
June 5th and 6th were significant days for the cryptocurrency industry, with two of the largest and leading crypto trading platforms facing the heavy hand of the regulator, accusing both exchanges of crimes, including trading securities and operating illegally in the American market.
Now, what can we expect in the coming days? Who will be the next targets of the SEC? And does Coinbase have arguments to challenge the regulator? Leave your comment below, and let's engage in a discussion about today's topic. Your opinion matters.
Earn Matic for your content Published on Wubits the easiest way. The platform have (4) ways to maximize users monetization in their web3 social platform and pay On-chain on the Polygon Blockchain. What you waiting for to grab your spot and start earning Free Matic for you content on the Platform? Join here.
article 34