“The first cryptocurrency exchange to get the regulatory hammer was Binance, the world’s largest cryptocurrency exchange. The next cryptocurrency exchange to be hit with an SEC lawsuit was Coinbase and it looks like this is just the beginning. With most exchanges offering a wide range of cryptos, it looks like the regulatory hammer will hit them all, as many of the cryptos on the blockchain protocol are considered securities by the SEC,” said Edward Moya, Senior Analyst at OANDA.
The OANDA analyst noted that the global crypto market capitalization has shrunk much more and with the two most popular exchanges being sued, crypto investors will now have to decide whether to trust that all of their offerings will continue to be available to trade.
Through a statement, Coinbase said that it is proud to represent the crypto industry in court to finally get some much-needed clarity.
“Instead of publishing a clear rule book, the SEC has taken a rule-by-enforcement approach that is hurting America. We’re ready for this. In the meantime, let’s keep moving forward and building as an industry. America will get this right in the end. “, the company said.
In the Binance case, the SEC accused the exchange of inflating trading volumes, diverting client funds, improperly mixing assets, failing to keep wealthy US clients off its platform, and misleading clients about its controls.