On June 6, the US Securities and Exchange Commission (SEC) sued Coinbase, the second largest crypto exchange by volume, according to CoinMarketCap.com.
Federal regulators accused Coinbase of operating the crypto asset trading platform as an unregistered national securities exchange and broker, per a June 6 press release.
The SEC also alleged that at least 13 crypto assets that Coinbase made available to customers, including Solana and Cardano tokens, qualified as “crypto asset securities, according to the complaint.
In addition, the SEC has also filed 13 lawsuits against Binance and CEO Changpeng Zhao, as well as BAM Trading and BAM Management. The SEC requested a temporary restraining order to freeze assets for all parties involved.
Impact of Enforcement For Crypto Investors
Reporting from CNBC, Tuesday (13/6/2023), co-founder and Chief Experience Officer of Solidus Lab, Chen Arad said the strong message coming from the SEC and its Chairman Gary Gensler is a sign the SEC may be doing exactly what many in the industry believe. this is killing crypto in the US.
On the other hand, an assistant professor at Columbia Business School, Omid Malekan said some crypto companies may choose to limit which services they offer to US customers because of the complicated regulatory framework.
That’s bad for US investors. That means they will have fewer choices and may have to pay higher fees,” said Malekan.
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Malekan added that people will stay away or go away from crypto. Whereas those who are still lagging behind and investing and using services like Coinbase may be fine with the risks involved.
While the ongoing regulatory dynamics in the US may impact demand, people looking to buy crypto will continue to find ways to do so and using an established crypto exchange that is regulated in the US is still one of the best and safest ways.
The US remains a core market for crypto companies. About 20 percent of Americans say they have invested in, traded, or used cryptocurrency, according to a January NBC News poll.
Additionally about 42 percent of Americans between the ages of 18 and 34 say they have dabbled in crypto trading.
