The US Securities and Exchange Commission (SEC) has sued two of the world’s largest crypto exchanges, Coinbase and Binance, over allegations of operating illegal securities exchanges [1]. The SEC has viewed all crypto tokens, except Bitcoin, as securities in the US because they often represent investments in entities.
Although the lawsuits are expected to take months to resolve, they have raised concerns that the lack of regulatory clarity is pushing the cryptocurrency industry offshore, which could cede authority to foreign regulators who have established clearer guidelines [1]. The lawsuits are not expected to affect traders in the near future, but they could transform the industry [2].
The SEC’s actions are also sending a warning to investors to “buyer beware” that could spook them from trading cryptocurrencies and hinder the trading activity of other tokens offered on crypto exchanges [2]. The complaint against Coinbase came a day after the SEC sued Binance, the world’s largest crypto trading platform, accusing it of similar violations [3].
References: [1] US crypto investors are left with few options [2] SEC’s crypto crackdown unlikely to affect traders in … [3] US sues Coinbase as crypto crackdown widens
SEC sued Coinbase for operating an illegal exchange
Coinbase CEO Brian Armstrong revealed that the US Securities and Exchange Commission (SEC) changed its “tone” in its questioning of the crypto exchange before filing a lawsuit against it. [1][2] Armstrong stated that the SEC had previously approached Coinbase with more business-related questions, but then went quiet. However, the SEC sued Coinbase for operating an illegal exchange, a charge Armstrong contested, citing that the SEC only mentioned 13 out of the 200 assets traded on the platform as securities.
Armstrong also mentioned that the SEC’s attempt to sue Coinbase over its lending program further exacerbated the situation. [3] Despite this, Armstrong believes that the company will be able to handle the legal fees and business operations as it has over $5 billion on its balance sheet.
References: [1] Coinbase CEO Says SEC Started to Change ‘Tone’ Last Year [2] Coinbase CEO Says SEC Started to Change ‘Tone’ Last Year [3] Who Is Brian Armstrong? Coinbase CEO Is Taking On …
The SEC has warned investors about the risks associated with investing in crypto assets
The US Securities and Exchange Commission (SEC) is responsible for regulating crypto assets and the companies that offer them. [1] The SEC has warned investors about the risks associated with investing in crypto assets due to their volatility and lack of protection. Companies offering crypto asset investments must comply with the Securities Act, which requires registration of offerings and disclosures of important information about the company and the securities offered. [2]
The SEC’s enforcement push includes requiring crypto exchanges to register with the agency and comply with securities laws. This would force exchanges to adopt technology systems to make their order books audit-compliant and face strict regulations.
The SEC has also taken enforcement action against companies that breach securities laws. [3] The SEC is leading the charge for more regulatory oversight of cryptocurrency products and platforms that may be engaging in the sale and promotion of securities. Investors should exercise caution when investing in crypto assets and rely on proof of reserves with care.
References: [1] Exercise Caution with Crypto Asset Securities: Investor Alert [2] How SEC Regs Will Change Cryptocurrency Markets [3] Are cryptocurrencies securities? The SEC is answering the …
Crypto Price Today: Bitcoin above $26,400, losing -3.01%
According to recent crypto price updates [3], Bitcoin’s price has fallen by 3.01% in the last 24 hours, dropping below the $27,000 level. This decline is part of a wider market trend that has seen other cryptocurrencies such as Cardano and XRP also suffer price losses. The drop in Bitcoin’s price is attributed to regulatory enforcement against Coinbase and a lawsuit against Binance exchange, which led to $106 million in BTC long liquidations [1]. Despite this, institutional investors remain optimistic about the long-term prospects of Bitcoin, especially after the approval of margined futures contracts for Bitcoin by the Commodities Regulator [1]. Ethereum, on the other hand, has risen to around $1,900 from its Monday lows of $1,796 [2].
References: [1] Why is Bitcoin price down today? [2] Bitcoin Climbs Despite SEC Crypto Exchange Crack Down [3] Bitcoin news today, Bitcoin price, Bitcoin share price
Are the Whales manipulating the Bitcoin Price to avoid Crash in Crypto?
According to [1], some crypto whales can use their funds to manipulate the market for their benefit. This can cause significant market fluctuations that may have huge negative impacts on individual investors. It is not uncommon for whales to influence the market trends through large buy/sell orders and market manipulation tactics, as stated by [3]. However, it is not clear whether whales are manipulating the Bitcoin price to avoid a crash in the crypto market. The value of crypto coins is mainly determined by supply and demand, and whales can manipulate the market to benefit themselves, as mentioned in [2].
References: [1] What Are Crypto Whales and Can They Manipulate Prices? [2] What Are Crypto Whales & Why Do They Matter? [3] Here’s How Whales Cause Huge Bitcoin Price Swings
