US Launches Lawsuits Against Coinbase and Binance in Escalating Crypto Crackdown
📌The top US securities regulator, the Securities and Exchange Commission (SEC), has filed two lawsuits against major cryptocurrency platforms Binance and Coinbase, marking a significant escalation in the crackdown on the cryptocurrency industry.
📌The SEC on Monday took aim at Binance, the world’s largest cryptocurrency exchange, accusing the company and its CEO Changpeng Zhao of operating a «web of deception.» On Tuesday, the SEC accused Coinbase of operating as an intermediary in cryptocurrency transactions since at least 2019, while evading disclosure requirements meant to protect investors. It claims that Coinbase traded at least 13 cryptocurrency assets that qualify as securities and should have been registered with the SEC. Consequently, Coinbase shares were down 12%.
📌If successful, these lawsuits could transform the cryptocurrency market by asserting the SEC’s jurisdiction over the industry, which has long argued that tokens do not constitute securities and should not be regulated by the SEC. The SEC is seeking civil fines, the recovery of ill-gotten gains, and injunctive relief. These lawsuits could have an impact on the cryptocurrency industry by making it more stable and attracting more institutional investors and mainstream adoption.