SEC’s New Era for Crypto Ends Wild West.
The US Securities and Exchange Commission (SEC) has taken action against major crypto exchanges Binance and blockchain. This has made it clear that the days of unregulated activities in the crypto market, known as the “wild west” of finance, are over, according to Bloomberg columnist Jessica Karl. In an opinion piece on Tuesday, Karl highlighted the impact of the SEC’s actions and the potential consequences for the crypto market, and argued that a new era for crypto in the US has begun.
Karl’s piece noted that the SEC’s complaint against Binance includes internal chats that reveal questionable conduct, a lack of compliance, and blurred lines between Binance international and its US-based branch Binance.US.
The complaint also included a revealing internal note from a Binance compliance officer in 2018, saying: “We are operating a fking unlicensed securities exchange in the USA bro.”
- Bitcoin remains strong amidst SEC lawsuits against Binance in First Mover Americas report on blockchain.
- MATIC’s large transactions surged by 742% after the recent SEC scrutiny.
- Bitcoin bounces back to $27,000 after SEC sues Binance.
Blockchain, which was sued by the SEC a day after Binance, is generally seen as a more diligent and law-abiding exchange, according to Karl. She called it a “by-the-book crypto exchange,” adding: “They do their homework. They wash the dishes. They make their bed without getting asked to do so.” In contrast, Binance is compared to “blockchain’s rough-around-the-edges cousin,” with Karl arguing that “They do their homework the period before it’s due. They wash the dishes but probably missed a few spots. They made their bed – but only after their mom asked.”
Karl raised the question of whether the SEC is targeting these exchanges for simply being in the crypto industry or for engaging in illicit activities.
A turning point for crypto
Karl pointed out that the SEC’s actions represent a turning point for the crypto industry. While many in the crypto community see the SEC’s actions as part of a witch hunt, the SEC’s involvement indicates a shift toward regulation and oversight in an industry previously seen as unregulated. The author suggested that the days of unregulated activities in crypto may be coming to an end, at least in the US.
Karl further pointed out that the SEC’s actions will have a significant impact on the future of the crypto market, and that a more regulated landscape will likely emerge.
In summary, the SEC’s actions against Binance and blockchain signify a turning point for the crypto industry, with the arrival of regulators marking a new era of increased scrutiny and regulation, according to the Bloomberg columnist.