Crypto crackdown tightens: SEC sues Binance, Coinbase

[MongiIG]

The US Securities and Exchange Commission (SEC) has sued cryptocurrency platform Coinbase the second lawsuit in two days against a major crypto exchange.

 Angeline Ong | Presenter, Analyst and Content Editor, London | Publication date: Wednesday 07 June 2023 

IGTV’s Angeline Ong takes a look at the differences between the SEC’s crackdown on Binance and Coinbase, and why this could be a gamechanger for the crypto industry.

(Video Transcript)

SEC cracks down on cryptos

The crypto crackdown is escalating as the SEC has issued a lawsuit against Coinbase, the second in two days against a major crypto exchange.

Now on Monday, the SEC targeted Binance, the world's largest cryptocurrency exchange. The two cases are of a different nature though with the SEC accusing Binance and its CEO, Chang Ping Tao of operating a "web of deception", while with Coinbase, the regulator considers it is operating illegally because it failed to register as an exchange.

Now, if successful, these lawsuits could trigger a major change in the crypto world, asserting the SEC's jurisdiction over it. So far, the industry's argument is that tokens do not constitute securities and should not be regulated by the SEC.

Coinbase share price chart

Just checking in on Coinbase, which is on all-session stock on IG. It fell almost 10% in the previous session.

[WizardOfig]

I think the SEC will have to double down if not the US should be left in the dust over the next couple of years honestely..

[WizardOfig]

The SEC will probably choke on itself, and it might be whats starting a serious decline for the US..

[XTRAVAGANZA]

SEC has been hell bent on putting regulations on crypto. If they succeed i wonder if it well spell well for the crypto space or not cos it is meant to be decentralized and regulations will more likely make it centralized. This should be interesting, we will see how it plays out.