SEC is in Action After Suing Binance, Here Comes Coinbase Exchange

BitDane

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Quote from: Silberman on June 10, 2023, 04:40:35 PM

Quote from: lalabotax on June 10, 2023, 03:44:19 PM

I am absolutely disgusted with the SEC. They are always looking for big targets to take down cryptocurrencies. Just look, they are currently successful, even the crypto market is really down. This might be good for those of us doing DCA to buy more Bitcoin or other crypto. However, isn't it annoying to see how the SEC is always looking for targets and taking them down like this? And I'm sure it won't stop. Even this is Binance as well as Coinbase. This will be a very valuable lesson for exchanges or other platforms, learning from this case and also several other cases, starting from the old XRP.

While you are correct there is nothing we can do to stop them or influence their decision, it is obvious the SEC does not move unless it was given an order to do it, so by taking this posture it is becoming painfully clear the US is once again attacking this market with the intention of making it more unstable, it seems to me they are afraid as they can see their economy is not doing as well as they expected and they do not want this market to do well either, as this could bring more attention to it and it could make the next bull run even stronger.

It is a sad fact that we the citizen can do nothing but watch on the sideline. The case with Coinbase is a legal matter and I believe SEC has reasons to go after the exchange. They won't do anything unless they had found flaws and action that the SEC deemed illegal and it was stated by @OP on its first post.

Honestly I don't care what happen to Coinbase and other huge exchanges. Coinbase had been rumored to be leaking its users information to the authority so I think their situation today suits them. I also think that these kind of cases is part of the process of adopting cryptocurrency in government terms. I do not know if it will be beneficial for us or not but I'd rather have that than let scam and fraud company saturate the cryptocurrency sphere.

goaldigger

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Quote from: lalabotax on June 10, 2023, 03:44:19 PM

I am absolutely disgusted with the SEC. They are always looking for big targets to take down cryptocurrencies. Just look, they are currently successful, even the crypto market is really down. This might be good for those of us doing DCA to buy more Bitcoin or other crypto. However, isn't it annoying to see how the SEC is always looking for targets and taking them down like this? And I'm sure it won't stop. Even this is Binance as well as Coinbase. This will be a very valuable lesson for exchanges or other platforms, learning from this case and also several other cases, starting from the old XRP.

SEC will always be SEC, who acts to control the market trend and to create panic, they already knew the weakness of this market and they are targeting it now. If only these crypto companies can choose to operate outside US, then we might see a more free market from any government intervention. Binance can handle this one, let’s believe on that and wait for the updates, this may takes years too before they come up to resolution.

Silberman

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Quote from: lalabotax on June 10, 2023, 03:44:19 PM

I am absolutely disgusted with the SEC. They are always looking for big targets to take down cryptocurrencies. Just look, they are currently successful, even the crypto market is really down. This might be good for those of us doing DCA to buy more Bitcoin or other crypto. However, isn't it annoying to see how the SEC is always looking for targets and taking them down like this? And I'm sure it won't stop. Even this is Binance as well as Coinbase. This will be a very valuable lesson for exchanges or other platforms, learning from this case and also several other cases, starting from the old XRP.

While you are correct there is nothing we can do to stop them or influence their decision, it is obvious the SEC does not move unless it was given an order to do it, so by taking this posture it is becoming painfully clear the US is once again attacking this market with the intention of making it more unstable, it seems to me they are afraid as they can see their economy is not doing as well as they expected and they do not want this market to do well either, as this could bring more attention to it and it could make the next bull run even stronger.

lalabotax

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I am absolutely disgusted with the SEC. They are always looking for big targets to take down cryptocurrencies. Just look, they are currently successful, even the crypto market is really down. This might be good for those of us doing DCA to buy more Bitcoin or other crypto. However, isn't it annoying to see how the SEC is always looking for targets and taking them down like this? And I'm sure it won't stop. Even this is Binance as well as Coinbase. This will be a very valuable lesson for exchanges or other platforms, learning from this case and also several other cases, starting from the old XRP.

sana54210

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Quote from: TheGreatPython on June 09, 2023, 09:14:23 AM

I don't understand why SEC doesn't do all this when an exchange starts operating in the beginning, they wait for years and years so that they get famous, a lot of people start using them, they have a lot of money, and then they start suing the exchanges and all of a sudden, they remember that these exchanges are not registered or are going against the rules. If that is the case, it was from the beginning, why didn't they shut it down right at that time?

This is all drama and nothing else, and to be honest, if they shut down an exchange after so many years only by saying that they are protecting investors, they are lying, what they are doing is only going to make investors lose more money, and they do it for themselves or for the government and they don't really care about people at all.

I think it has to pass a certain threshold to become a problem? That seems like the only logical argument here because otherwise why wouldn't they just do it at the start right? If they are not doing it at the start and they are only coming after them after a while because that means that there is like a certain period given to the exchanges or there are certain numbers they have to pass.

It means that at the start you can do whatever you want as long as it's legal, and it is legal there is nothing wrong with that, but then after a while if you still do not publish them as securities then it becomes a trouble. If an exchange wants to be certain that it's not checked for securities, then you can only put like a few coins that's it, for example a bitcoin-fiat converter would not get this trouble at all.

Argoo

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Quote from: pawel7777 on June 06, 2023, 04:18:08 PM

You cannot not feel sorry for Coinbase. As far as I know they tried really hard to be compliant, even tried to get a court to force SEC to give a clear answer on what is and isn't a security, but all they get is a lawsuit against them.

Binance also get hit with massive funds outflow from its US business of $1.4bn since the lawsuit. I'm sure they survive though, but will struggle to return to the same levels.
https://www.reuters.com/technology/bitcoin-steadies-above-25000-binance-sec-lawsuit-rattles-investors-2023-06-06/

The current situation with SEC lawsuits against cryptocurrency exchanges indicates that the cryptocurrency market is still highly unsettled. Therefore, the regulation of cryptocurrencies by states is necessary and inevitable. Lacking a sufficient regulatory framework in this area of finance, the SEC wants to work on litigation to guide it further. This is not the best way out of this situation, but it can lead to unexpected results in favor of the cryptocurrency. We need to wait at least for the final court decision on the SEC lawsuit against Ripple Labs. This decision will significantly affect the fate of all other similar SEC lawsuits.

Bitstar_coin

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Lol, and am shocked to see them going after the mighty coinbase who can do no wrong. I thought binance is the black sheep of all the exchange in the crypto space and coinbase is the supposedly great one.
They can keep attacking crypto indirectly by attacking the 2 top exchange, in the end, the crypto space will still flourish.
Just so you know, this attacks are indirectly jeered towards the crypto community in general. IMO, all exchange should stop operating their us base branches. They should all be shut down, am sure the crypto space can survive without the use market.

mvdheuvel1983

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While the US lacks explicit registration regulations for cryptocurrency exchanges, Hong Kong does. In the US, Coinbase and Binance have been operational for several years. To conduct business in the US, they must have registered somewhere. The SEC has now awoken and said that they were not properly or not properly registered. For these companies to adhere to, SEC must first establish precise registration regulations similar to those in Hong Kong. Having said that, three days ago when I heard the news, I took the remaining Bitcoin out of Coinbase and transferred it to my own wallet. However, I'm comfortable leaving all of my other holdings there. Coinbase and Binance, in my opinion, will triumph.

TheGreatPython

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Quote from: Faisal2202 on June 06, 2023, 08:30:41 AM

Short story, SEC always came up with the issue concerning assets declaring as (working as) Securities and SEC wants every Security to be in compliance with them. Coinbase exchange was already alleged by SEC in the past and warned too but who knows what got into SEC this week, like they are after every exchange possible. I think its pressure from the top, maybe someone advised that dealing with these centralized exchanges might control the inflation in US (again-->who knows what got into them).

I don't understand why SEC doesn't do all this when an exchange starts operating in the beginning, they wait for years and years so that they get famous, a lot of people start using them, they have a lot of money, and then they start suing the exchanges and all of a sudden, they remember that these exchanges are not registered or are going against the rules. If that is the case, it was from the beginning, why didn't they shut it down right at that time?

This is all drama and nothing else, and to be honest, if they shut down an exchange after so many years only by saying that they are protecting investors, they are lying, what they are doing is only going to make investors lose more money, and they do it for themselves or for the government and they don't really care about people at all.

pawel7777

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Quote from: Flexystar on June 08, 2023, 01:26:46 PM

Hmm, it’s pity how crypto exchanges are getting seriously slaughtered in the name of securities. I think the problem started when these exchanges initiated their expansion with other instruments such as trade of crypto with fiat. This led people to start exchanging the crypto currencies on large scale with fiat thus making intervention of the Security Exchange Commission. Obviously its the fiat money that is getting traded into the Bitcoin for example so they need to have accounts for that. This imposed KYC restrictions and thus it turned everything into normal stock market even for the crypto exchanges. Not sure how far this will go but it ain’t good for us.

Wrong. The fact that they are trading crypto for fiat (as exchanges have always been, since Bitcoin's early days) is not what's the problem here. The problem is that SEC, for years was delaying producing a clear set of rules and guidelines for determining what is classed as security and what isn't. If something isn't officially disallowed by law, then it's considered legal, therefore exchanges were taking advantage of the demand and started offering different types of services, until SEC woke up from a nap and decided that some sort of services and certain coins actually fall under securities laws.
But even if those exchanges were using potatoes or other cryptos instead of fiat - it wouldn't change a thing.

SyndicateLabs

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This is an interesting drama at the moment in the crypto space, I wonder if there are more impressive dramas waiting for us ahead. Events related to centralized exchanges and new SEC regulations impact the price of Bitcoin and the cryptocurrency market, but these effects can vary and cannot be accurately predicted. The core values of Bitcoin still exist and the community of Bitcoin users will continue to exchange and trade on other exchanges if a centralized exchange is shut down in any way.

Creating opportunities to capitalize on price movements may be part of the reasons some market participants invest in Bitcoin. Events related to centralized exchanges and new regulations may impact the price of Bitcoin and the crypto market but the core price of Bitcoin remains and works to diversify asset classes and always important in your property management job is very important.

Bitstar_coin

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Quote from: Flexystar on June 08, 2023, 01:26:46 PM

Hmm, it’s pity how crypto exchanges are getting seriously slaughtered in the name of securities. I think the problem started when these exchanges initiated their expansion with other instruments such as trade of crypto with fiat. This led people to start exchanging the crypto currencies on large scale with fiat thus making intervention of the Security Exchange Commission. Obviously its the fiat money that is getting traded into the Bitcoin for example so they need to have accounts for that. This imposed KYC restrictions and thus it turned everything into normal stock market even for the crypto exchanges. Not sure how far this will go but it ain’t good for us.

Brah, if you don't trade crypto with fiat what else you will trade it to that will turn fiat in your account? How you suppose people who never hold crypto and don't accept it as a means of payment will be able to own crypto if they don't buy it with fiat? and for your knowledge crypto fiat trading is almost as old as btc existence so it is not something that started yesterday.
Besides, there are new uncovering stories surrounding the SEC crackdown on binance, you should do more digging, perhaps this is not more of a personal vendetta than actual security check.

Flexystar

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Hmm, it’s pity how crypto exchanges are getting seriously slaughtered in the name of securities. I think the problem started when these exchanges initiated their expansion with other instruments such as trade of crypto with fiat. This led people to start exchanging the crypto currencies on large scale with fiat thus making intervention of the Security Exchange Commission. Obviously its the fiat money that is getting traded into the Bitcoin for example so they need to have accounts for that. This imposed KYC restrictions and thus it turned everything into normal stock market even for the crypto exchanges. Not sure how far this will go but it ain’t good for us.

Unbunplease

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Quote from: el kaka22 on June 08, 2023, 11:32:32 AM

If you read the news, it's not about the exchange being exchange and doing anything exchange related, that was always the case and they let it be and it even went public that way, there is nothing wrong with that. They are trying to see what they list and why they list what they list, that's the point.

However, I do believe that we are talking about something that was a bigger deal when we are talking about a financial situation that worked better, and that is listing new tokens and such. These tokens have "owners", bitcoin doesn't have any, we are all owners of bitcoin, but some that these exchange list have owners and that makes it a security so listing a security is a trouble. That's what SEC is looking into, worst case worst, these exchanges won't list anything without getting greenlight from SEC after this.

The SEC is assuming the role of the world gendarme. But will the world community accept it? If we concede on one thing, we will have to keep conceding. And if we talk about cryptocurrency, first of all we are talking about freedom, otherwise cryptocurrency is just an alternative means of payment and nothing more.

el kaka22

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If you read the news, it's not about the exchange being exchange and doing anything exchange related, that was always the case and they let it be and it even went public that way, there is nothing wrong with that. They are trying to see what they list and why they list what they list, that's the point.

However, I do believe that we are talking about something that was a bigger deal when we are talking about a financial situation that worked better, and that is listing new tokens and such. These tokens have "owners", bitcoin doesn't have any, we are all owners of bitcoin, but some that these exchange list have owners and that makes it a security so listing a security is a trouble. That's what SEC is looking into, worst case worst, these exchanges won't list anything without getting greenlight from SEC after this.

lionheart78

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I wonder if all companies move out of US jurisdiction, what will happen to the US economy? I believe these cases are somehow maliciously done, and it is obviously a power tripping stating that SEC is still in control. Though I tried to believe that SEC are just doing their job, I cannot remove the doubt about the intention of the SEC in suing the largest cryptocurrency exchanges.

I believe if ever the case goes to a full-blown exchange shutdown, these exchanges are able to establish a new one even before the verdict is released. I believe this case is long-term and may take years before a decision will take place. So there is plenty of time for these exchange owner to setup a new exchange and shift their focus of operation there.

kryptqnick

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It's sad to see that the SEC is targeting a significant part of the crypto industry in the US, but Binance and Coinbase are large and serious companies (which do their best to comply with all sorts of regulations and operate legally), so I truly hope that they'll manage to put up a good fight and perhaps even win against the SEC, which would set a good precedent for the future. Otherwise, big companies will probably leave the US to avoid being sued, and that can be challenging for crypto users in the US.

Andrija Branislav

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Quote from: pawel7777 on June 07, 2023, 05:22:05 PM

Quote from: dothebeats on June 06, 2023, 05:28:20 PM

How often do lawsuits like this materials into a full-blown closure of exchanges? Binance, out of all the existing exchanges today, seem to be the most experienced when it comes to legal pressure like this. It's like CZ has been brushing off all those lawsuits and all those pressures mounted onto him and his platform, and I'm sure he'll end up just paying some fines and fixing whatever there is to fix as mandated by the SEC.

It all depends on what the SEC's true intentions really are. If they're just a tool of the government and are part of a serious crackdown on the crypto market, then things are not looking great. Even if Binance (and Coinbase) settle and/or pay the fines, SEC could keep harassing them forever by declaring other coins as securities.
But if it is just a one-time extorsion action, that's maybe intended to show that they are doing "something" after their failures with FTX - then we might see things going back to normal.

The intentions of regulatory bodies like the SEC can indeed have a significant impact on the crypto market and that's for sure. However, it is difficult to know their true intentions, but their actions are usually driven by existing and relevant investor protection and law enforcement. Settlements and fines are common results of regulatory investigations. The implications of these actions can vary, such as changing business practices or increasing compliance measures.

retreat

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Quote from: Inwestour on June 07, 2023, 07:09:07 AM

Quote from: retreat on June 07, 2023, 06:22:00 AM

They really don't let the CEOs of these exchanges live in peace, there must be something that they think is wrong with the operations of these exchanges and they must immediately submit to them. Even Coinbase is not exempt from this attack and I think that other exchanges operating in America will also be hit by them. I can't understand why these boomers are so passionate about attacking exchanges. Okay, regulation is needed, but does it have to be this strict? don't they think that the impact of their attacks also affects the crypto assets of Americans? they should regulate these exchanges but still have little tolerance because the impact of their decisions caused billions of dollars of losses in the crypto market.

Regulators cross the line, you need to know when you are working for good, and when your actions are harmful. It seems that now it is the second option, for the development of cryptocurrencies in the United States.

It seems to me that this will not end until the regulators lose some high-profile lawsuits. It was also strange for me to see how they decided to bring the case with Binance to court, because it was always an exchange that was in contact with regulators. Well, it's their choice, and I think that in the end it will play against them, you can't fight with so many opponents at the same time.

I also see the SEC's actions as unreasonable. Even though the regulator should give a warning to exchanges and then they will improve their operations if something is not in accordance with the rules. But what the SEC did, they went straight to court and gave the impression that this exchange was 100% guilty, that's very unreasonable. They didn't give any warning letter or instructions whatsoever, they just sent a letter and stated that these CEOs are to go to court for the accusations they are accusing. This is clearly a discriminatory act against cryptocurrencies.

Baofeng

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Quote from: pawel7777 on June 06, 2023, 04:18:08 PM

You cannot not feel sorry for Coinbase. As far as I know they tried really hard to be compliant, even tried to get a court to force SEC to give a clear answer on what is and isn't a security, but all they get is a lawsuit against them.

Binance also get hit with massive funds outflow from its US business of $1.4bn since the lawsuit. I'm sure they survive though, but will struggle to return to the same levels.
https://www.reuters.com/technology/bitcoin-steadies-above-25000-binance-sec-lawsuit-rattles-investors-2023-06-06/

Yeah and Coinbase already hint that if they US government will continue to pursue them, then they might opt to go out already. So interesting development here, two of the biggest exchanges, Coinbase and Binance.US is now being sued by SEC and CFTC. Although at close look at the lawsuit, it doesn't mentioned BTC at all, at least the case against Coinbase. It's about securities projects that SEC thinks these exchanges facilitated.

So I guess with this precedence, any exchanges that is operating in the US might get sued. Just a matter on who's next on the list of SEC.

Topic: SEC is in Action After Suing Binance, Here Comes Coinbase Exchange (Read 340 times)