https://youtu.be/MgQpiTz1Qj0
SEC’s Coinbase Lawsuit Heralds Deepening US Crypto Crackdown
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SEC sued Coinbase alleging securities rules violations Tuesday
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Regulator brought sweeping case against Binance on Monday
The Securities and Exchange Commission widened its sweeping crackdown on crypto by accusing Coinbase Global Inc. of running an illegal exchange, a move that could make it harder for the industry to operate and for US citizens to trade. In a 101-page lawsuit filed Tuesday in federal court in New York, the SEC alleged that Coinbase for years evaded its rules by letting users trade numerous crypto tokens that were actually unregistered securities. Just a day earlier, the regulator sued rival Binance Holdings Ltd., alleging a slew of violations. The SEC moved against Coinbase, the biggest US crypto exchange, after Chair Gary Gensler repeatedly argued that most tokens are subject to his agency’s oversight and that swaths of the industry have been breaking the law. At the same time, US regulators warned banks to steer clear of crypto because of potential risks to the financial system, making it harder for US citizens to invest. The SEC’s civil lawsuit stands out because of Coinbase’s high profile in the US, and its status as a publicly traded company. The stock tumbled as much as 20% in New York trading, shaving about $1.5 billion off the company’s market capitalization. The shares were down 11% to $52.21 at 12:22 p.m. in New York. The case against Coinbase, coupled with Monday’s against Binance, forms a one-two punch against the industry. The SEC alleged Binance, the world’s largest crypto platform, and its chief executive, Changpeng Zhao, mishandled customer funds, misled investors and regulators, and broke securities rules. “The SEC under Gensler is dead set on enforcing rules that, if followed, would kill off almost all of crypto,” Omid Malekan, adjunct professor at Columbia Business School who has consulted on crypto, said in a text message.ns by the SEC against Binance and Coinbase confirm that US regulators believe strongly that these entities have for years ignored the securities laws,” Ashok Ayyar, counsel at Ashbury Legal, said by text message. A virtual currency may fall under the SEC’s remit if investors buy it to fund a company or project with the intention of profiting from those efforts. That determination is based on a 1946 US Supreme Court decision defining investment contracts. In its complaint, the SEC said that numerous tokens offered on Coinbase were securities, including SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO. “One thing that stands out for me is the number of prominent tokens the complaint alleges to be securities,” said Philip Moustakis, a former attorney in the SEC’s enforcement division who is now a partner at Seward & Kissel. “Each of those tokens have stakeholders who will surely want to be heard on the subject.”
Binance, US affiliate hit by net outflows of $790 mln in last 24 hours
Investors have pulled around $790 million from the crypto exchange Binance and its U.S. affiliate in the last 24 hours, data firm Nansen said on Tuesday, a day after a top U.S. regulator sued both exchanges. Binance saw net outflows of $778.6 million of crypto tokens on the ethereum blockchain, with its U.S. affiliate, Binance.US, registering net outflows of $13 million, Nansen tweeted. Bitcoin steadied after falling more than 5% yesterday, its worst daily decline since April 19. The world’s biggest cryptocurrency was last at $25,723, flat on the day but pinned near a more than two-month low. “It’s another blow to the crypto industry and the crypto exchanges of the world,” said Tony Sycamore, market analyst at IG Markets, of the SEC suit. NN: This is the kiss of death. Governments are not going to allow a competing transactional currency. They have effetely removed precious metals as money. To me its a questionable storehouse of wealth, And if they can kill gold they sure as hell can and will kill crypto coins….. Unless its the one of their creation and CONTROL!