• The SEC filed lawsuits against Binance and Coinbase, the world’s and US’s largest crypto exchanges.
• These cases could define how cryptocurrencies are regulated in the US.
• Both companies have responded differently, with Coinbase CEO Brian Armstrong appearing on TV to promote their services while Binance US halted trading of certain token pairs.
SEC Crusades Against Binance & Coinbase
The U.S Securities and Exchange Commission (SEC) recently took legal actions against two of the biggest crypto exchanges in the world – Binance and Coinbase. This is an important milestone as these cases could set a precedent for future cryptocurrency regulations in the United States.
SEC Lawsuit Against Binance
The SEC lawsuit against Binance is seeking to stop its unregistered securities trading activities. The suit also alleges that Binance violated several other security laws such as failing to register as a broker-dealer or exchange, making false statements about its services, and engaging in illegal insider trading activity.
SEC Lawsuit Against Coinbase
The SEC’s lawsuit against Coinbase is slightly different than the one against Binance as it focuses on whether or not the exchange has been operating its staking service without proper authorization from regulators. The suit also accuses Coinbase of violating other security laws by engaging in prohibited transactions involving digital assets that may be considered securities under federal law.
Responses From Companies
Coinbase CEO Brian Armstrong has appeared on TV to defend his company’s services while announcing that they do not plan to shut down their staking service despite pressure from 10 state regulators. On the other hand, Binance US has decided to halt trading of certain token pairs which were traded against Tether (USDT).
Both lawsuits present an unprecedented opportunity for regulatory clarity around cryptocurrencies in the United States. It remains to be seen how both companies will respond and what this will mean for future regulation attempts by government bodies and agencies around the world.