Explain this to Me Like am a Five Year Old - page 2.

retreat

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Quote from: alastantiger on June 07, 2023, 03:39:33 PM

The above is a summons from the US District Court for Binance CEO CZ. The past two days have been really hectic for me, as I've been trying to understand what's happening with the SEC, Binance, and Coinbase, but I'm not getting a clear picture. Can someone please explain to me, like I'm 5 years old, what the hell is going on?

What does the SEC really want? Do they want to shut down Binance US and Bitcoin?
What would happen if CZ doesn't show up and a judgment is passed? Would they arrest CZ and use him as an example?
Does the SEC want to push Binance out of the US and convince their allied countries to do the same?
What are the implications of Binance leaving the US? Will it hurt Binance more, Bitcoin, or the US?
What message is the SEC trying to convey to other nations, especially their allies?

In short, the SEC considers that Binance and Coinbase violated their rules and whether they like it or not they have to answer the summons to buy an explanation regarding their accusations and if they do not comply with this, their business will be unregistered and may have their operations closed in the US. If Binance and Coinbase do not heed this call (which is unlikely) it will have a significant impact on the crypto market, given that Binance US and Coinbase are large CEXs and their operations could impact the crypto market.

As for the US itself, they will also be affected, even if it's not too massive, but it will be quite detrimental for them. Therefore the SEC also gave about 21 days so they could negotiate and explain what these officials wanted. 21 days is quite a long time and it could very well be used to negotiate with the these officials.

CryptoBuds

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In my opinion, Binance and Coinbase are the two exchanges considered the mainstays of the crypto industry, and the SEC attack on these 2 companies seems to be hitting the entire crypto industry. If they win this war, they will continue to attack and legally take over the industry. Their aim is still to control and manipulate the entire market, but many people don't understand the problem and get too excited when they see the SEC attacking centralized exchanges, and they think it's good for bitcoin.

Darker45

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Quote from: alastantiger on June 07, 2023, 03:39:33 PM

What does the SEC really want? Do they want to shut down Binance US and Bitcoin?
Does the SEC want to push Binance out of the US and convince their allied countries to do the same?
What message is the SEC trying to convey to other nations, especially their allies?

These are pretty much the same questions.

We probably don't know what the SEC really wants, what their ulterior motives are, if there are any, or whether they're just trying to send a strong message. If we assume regularity, then the agency is simply performing its mandate.

To be specific, what they're simply pointing out is that Binance has committed violations so they have to be brought to court. The agency is filing 13 charges all in all.

Quote

What are the implications of Binance leaving the US? Will it hurt Binance more, Bitcoin, or the US?

It will hurt all three of them. It will hurt Binance, of course. That's obvious. It will hurt the US as well. We have all been hearing the cries of crypto companies in the US because of how bad the regulatory environment is. And it will also hurt Bitcoin. And, therefore, us. But whatever happens, Bitcoin will recover from this in due time.

Quote

What would happen if CZ doesn't show up and a judgment is passed? Would they arrest CZ and use him as an example?

I'm not a legal expert, but since this is a civil case I guess nobody will go to prison. Heavy damages will be collected, though.

If the charges are left unanswered, I guess the court will pass judgement without hearing the side of the defendant. Needless to say, the upper hand will be on the part of the plaintiff, and they will probably win it. And whatever appropriate legal punishment due to the violations enumerated shall be imposed on Binance.

ImThour

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Bitcoin Bottom was at $15.4k

SEC just wants to knock down the biggest Crypto exchange in order to get people investing back into stocks that their members can pump and dump easily.
The crackdown on Binance will lead to a collapse in the market, which might also give them an opportunity to buy as the fear increases.

Quote

What message is the SEC trying to convey to other nations, especially their allies?

It's more like countries which have big Stock Market are complying together to bring down the Cryptospace.

joniboini

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Quote from: alastantiger on June 07, 2023, 03:39:33 PM

What message is the SEC trying to convey to other nations, especially their allies?

I'm not really sure if a single decision by SEC makes other countries will follow them blindly. Not to mention there is also dissatisfaction with SEC inside the US. AFAIK, they get sued by Coinbase regarding regulation clarity and they have yet to respond. They even get a deadline to respond within a week or so[1].

At the end of the day, they are trying really hard to make most tokens classified as security and sue exchanges left and right. The end goal is definitely to gain control over the market. As others have mentioned, better to be safe than sorry. Withdraw your money if you have any, and use other platforms if you need to trade your crypto (or look at P2P).

[1] https://decrypt.co/143673/us-court-gives-sec-one-week-to-respond-to-coinbases-rulemaking-petition

dzungmobile

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You don't need to have any answer at the moment.

What you must do is withdraw your money from Binance and store it in your wallet. You can wait months to see the dust settles down and have answers for all those questions or might be not.

Answers are not helpful to keep your money safely. You can keep your money safely by withdrawal after which you don't have to mind what will happen with Binance and SEC. At least your money will be safe but if you are more worrying about it, cash out your cryptocurrency and avoid crypto market crash, stable coin de-pegs.

You don't have to believe in Binance and CZ because it's your money. A joke is SEC did not sue FTX. Grin

FlyingDream

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You asked five questions.

1.
The SEC believes it should regulate certain things that Binance currently does outside of its regulation. This legal action will force the courts to decide whether or not the SEC can really do what they want to here. That's why the SEC is doing this: to try to get the courts to tell everyone that the SEC gets to regulate Binance (and others) the way it wants to.

2.
CZ can make arguments about why he shouldn't have to appear, but at the end of the day the court gets to decide who's right and who's wrong. CZ could lose a court case by default, just like a football team could lose a game by default if they don't show up and play.

3.
You're repeating question #1, we've already discussed the SEC's motive here.

4.
Binance leaving the US would have a huge impact on Binance. Bitcoin would also be affected, one can only assume. The US is a much larger entity then both, so the impact on the US wouldn't be as great.

5.
The SEC is not doing this to send a message to foreign jurisdictions. The SEC is attempting to establish precedents in the US court system, as previously mentioned.

Of course there's much more I could say on this subject, but a stupid five-year-old like you wouldn't understand.

alastantiger

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The above is a summons from the US District Court for Binance CEO CZ. The past two days have been really hectic for me, as I've been trying to understand what's happening with the SEC, Binance, and Coinbase, but I'm not getting a clear picture. Can someone please explain to me, like I'm 5 years old, what the hell is going on?

What does the SEC really want? Do they want to shut down Binance US and Bitcoin?
What would happen if CZ doesn't show up and a judgment is passed? Would they arrest CZ and use him as an example?
Does the SEC want to push Binance out of the US and convince their allied countries to do the same?
What are the implications of Binance leaving the US? Will it hurt Binance more, Bitcoin, or the US?
What message is the SEC trying to convey to other nations, especially their allies?

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