Crypto Exchanges vs SEC

Litigation between US Securities and Exchange Commission and major crypto exchanges is ongoing. 

The SEC, following the position of its head Gary Gensler, accuses Coinbase, Binance and Kraken of illegal work as unlicensed securities trading activities.

So far, illegal trading in securities is the commission’s favorite accusation. Usually, it classified cryptocurrency to securities without any special checks and expertise. If there is cryptocurrency, then it is a security. The exception is Bitcoin, but it is a dubious asset that suspicious people use for dark causes.

However, Ripple managed to prove in court that at least monets traded on the stock exchange cannot be considered cryptocurrencies. And then there is the decision of the futures commission that defined Ethereum as commodities.

In the current situation, a court ruling in favor of the SEC would mean an additional control circuit over the crypto business. 

In fact, crypto exchanges fight for the right to do business in the US. Lose - and the SEC will receive extraordinary powers. For the crypto market, this will turn out to be a very serious shock, which will not survive all crypto-companies.

I note that in this situation the SEC’s legal attack on "all cryptocurrencies except Bitcoin" very successfully coincided with the launch of Bitcoin-ETF. Now investors are actually squeezed out of the freedom-loving crypto-market to respectable traditional exchanges. Assets are moving from a loosely regulated zone to a controlled area. I don’t know if there was such an initial plan, but as a result, the regulators made a strong move and gained a tactical advantage.

Very much will depend on the outcome of the current trial. Practice shows that crypto exchanges have a good chance of winning. If not completely, then at least partially. Precedents already exist.

Very exciting situation, in any case, it will be interesting!

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