US Tightens Noose Around Crypto with Coinbase, Binance Lawsuits
The U.S. Securities and Exchange Commission (SEC) sued cryptocurrency platform Coinbase over evading disclosure requirements meant to protect investors. The SEC has accused Binance and its CEO Changpeng Zhao of operating a "web of deception," leading to two significant lawsuits against major crypto exchanges and putting the industry under increased scrutiny.
If successful, these suits could transform the crypto market by asserting the SEC's jurisdiction over an industry that has operated largely outside regulation. While tokens have argued that they do not constitute securities and should not be regulated by the SEC, the lawsuits aim to establish the opposite.
While this regulatory crackdown may cause some short-term volatility in the crypto markets, it may also make the industry more transparent and secure for investors. However, it could also drive crypto firms out of the U.S. or lead to a more regulated industry.