The United States Securities and Exchange Commission (SEC), led by Gary Gensler, has made clear its intention to harm the cryptocurrency market through its multiple attacks on Coinbase and Binance. The US crypto market is under stress. Follow the evolution of the situation between the SEC and the crypto ecosystem in the United States on our live.
The United States Securities and Exchange Commission (SEC) has confirmed its intention to declare war on the crypto ecosystem on United States soil.
The collapse of FTX last November allowed the various regulators to tighten the screws on the various players serving the American cryptocurrency market. Jesse Powell, founder and former CEO of Kraken, pointed to the SEC’s tendency to penalize good players while letting bad ones grow like FTX, which we now know should have alerted regulators sooner.
Since then, things have accelerated: last February, Brian Armstrong, the CEO of Coinbase, publicly expressed his concerns about a possible intention by the SEC to outright ban ETH staking for individuals. The exchange is also at this very moment in the hands of the SEC, which recently sued it concerning the placing on the market of cryptocurrencies considered as securities.
A never-ending totally vague debate, which the SEC itself cannot clarify, and which perfectly illustrates the hostility of regulators towards US-based crypto companies.
But more recently, the conflict has escalated since the regulator attacked Binance head-on, targeting its American subsidiary Binance.US as well as its CEO Changpeng Zhao.
If you haven’t followed everything since the beginning of the case, here are some important articles to understand the current tension between crypto players in the US and the SEC:
June 9: Binance.US switches to “crypto only” mode
🔴 20:00 : The cryptocurrency exchange platform Crypto.com will stop offering its services to its US institutional clients from June 21. The exchange invoked a “ limited demand », and this in the light of « current market landscape ”, referring here of course to the tumults caused by the actions of the regulators.
Individual customers of the platform are not affected.
17:50 : Robinhood will no longer support Solana (SOL), Polygon (MATIC) and Cardano (ADA) on its platform after June 27. These cryptos were all qualified as securities by the Securities and Exchange Commission (SEC) a few days earlier.
“No other tokens are affected and your cryptocurrency is still safe on Robinhood. »
15:00 : SEC Chairman Gary Gensler defended the measures taken by the regulator against the exchanges Coinbase and Binance.US.
“We have issued a reopening statement that reiterates the applicability of existing rules to platforms that trade crypto-asset securities, including so-called DeFi systems, it is already the law. These are already the rules. Not liking the law, not liking the rules is different from not hearing it or not understanding it. […] There is no need for “regulatory clarity”. »
Drawing a parallel with the traditional financial market, he adds:
“Crypto securities markets should not be allowed to undermine the well-deserved confidence of public capital markets. […] They just don’t want to do what is asked of them. »
11:30 : Input Output Global (IOG), the company responsible for the development of Cardano, rejected SEC claims that ADA is a security. IOG says the SEC’s complaint contains “many factual inaccuracies.” The firm did not fail to criticize the regulator’s approach at the same time:
“The ADA is in no way a security within the meaning of United States securities laws. She never was. Understanding how decentralized blockchains work is fundamental to creating responsible legislation. »
11:00 : Rating agency Moody’s has downgraded Coinbase’s rating from “stable” to “negative”.
The American agency specializing in corporate ratings justifies this change by the lawsuits undertaken by the SEC. When Gary Gensler’s institution said Coinbase allegedly violated movable asset laws, investor panic rippled through its stock price, which plummeted about 20%.
👉 Coinbase: its rating assigned by the rating agency Moody’s becomes “negative”
10:30 : Gary Gensler, the chairman of the SEC, spoke about the famous definition of securities governing certain cryptocurrencies. He claimed securities laws were clearand that they were absolutely suitable for the crypto market:
“The purpose of Congress in enacting the securities laws was to regulate investments, whatever form they take and whatever their name. […] Congress included a long list of over 30 items in the definition of a title. »
10:00 : Changpeng Zhao, CEO of Binance, has denied SEC allegations of $12 billion valued fund swaps between Binance.US and an ancillary company.
“It’s just plain wrong. […]. To my knowledge, Binance.US had a total of around $2 billion in user funds. »
CZ claimed that the fluctuations that can be observed on the American platform are only the result of customer withdrawals and changes in the price of cryptocurrencies. He is pointing out that ” all user funds are accounted for and have never left the Binance.US platform “.
8:20 : Binance.US announces that its banking partners will stop covering the functionalities of withdrawals and deposits on the platform as of June 13th. The American subsidiary of Binance assures that its clients’ funds are safe and are insured at a ratio of 1 to 1. Thus, the platform plans to switch to “crypto only” mode as soon as these 2 measures are effective..
👉 Binance.US Suspends Dollar Deposits and Set to Halt Fiat Withdrawals on June 13
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