SEC Sues Crypto Exchanges Coinbase & Binance: No Rules In Place
• The US Securities and Exchange Commission (SEC) is suing cryptocurrency exchanges Coinbase and Binance for trading in unregistered securities.
• However, the SEC has failed to create a regulatory environment for the trade of cryptocurrencies.
• Coinbase CEO Brian Armstrong responded by saying the exchange had tried to register with the SEC but was unsuccessful due to lack of clear regulations.
US SEC Sues Crypto Exchanges
The US Securities and Exchange Commission (SEC) has sued popular crypto exchanges Coinbase and Binance for trading in unregistered securities. According to the agency, Coinbase operated an “unregistered national securities exchange, broker, and clearing agency” while Binance allegedly sold unregistered securities on its platform.
Regulatory Environment Not Established
Despite its claims against these crypto exchanges, the SEC has failed to establish a comprehensive regulatory environment for trading cryptocurrencies. In addition, it has not clearly defined what constitutes an unregistered security or how crypto exchanges should be registered with it.
Coinbase Tried To Register With SEC
In response to the lawsuit filed against them, Coinbase CEO Brian Armstrong stated that the exchange had attempted to register with the SEC but failed due to lack of clear regulations from the agency. He also pointed out that this would stifle innovation in the industry as well as limit investor protections if left unchecked.
Conflicting Statements From CFTC & SEC
The confusion surrounding crypto regulation is compounded by conflicting statements from both the Commodity Futures Trading Commission (CFTC) and the SEC over what constitutes a security versus a commodity. This leaves many traders uncertain about where they stand when it comes to investing in digital assets like Bitcoin or Ethereum.
It appears that both sides are at an impasse when it comes to defining crypto regulations; however, investors should remain vigilant as more clarity may be coming soon on this front from regulatory bodies such as Gensler’s office at the SEC. Until then, it is important for traders to keep abreast of changes so they can make informed decisions when engaging in cryptocurrency trading activities