Binance and blockchain lawsuits unify crypto industry.
Professionals in the cryptocurrency industry have responded to recent actions taken by the United States Securities and Exchange Commission (SEC) against two major crypto exchanges, Binance and blockchain. On June 5th, the SEC filed a lawsuit against Binance for allegedly offering unregistered securities. The following day, the commission went after blockchain on similar grounds, alleging that popular cryptocurrencies offered by the exchange, such as Solana (SOL), Polygon (MATIC), and The Sandbox (SAND), qualify as securities.
Cointelegraph reached out to market players in the space for their responses to the SEC’s recent actions. Some industry players believe that it will drive crypto companies away from the United States, while others simply call the SEC’s actions lazy. Kristin Smith, the CEO of the Blockchain Association, called the SEC’s approach to regulation unacceptable, but also expected, as the SEC has an anti-crypto stance. Paolo Ardoino, the chief technology officer of stablecoin issuer Tether, believes that companies’ complaints against the SEC should be listened to, as uncertainty of rules and guidance in the US is becoming a common theme, even among the country’s biggest crypto supporters. CEO Ted Shao of Turbos Finance echoes Smith’s sentiment, stating that this is not the direction Web3 developers want to see, as the SEC is coming after top projects, not just centralized exchanges.
Other professionals working in the space believe that the effects of this recent move include pushing crypto players to more crypto-friendly jurisdictions and weakening consumer confidence in crypto within the United States. Insider Intelligence crypto analyst Will Paige said that the recent suits highlight the SEC’s intent to police the space through enforcement in the absence of a regulatory framework. According to Paige, this could potentially knock down the already weak consumer confidence in cryptocurrencies in the country. Ben Caselin, the chief strategy officer at crypto exchange MaskEX, believes that while this is a case against Binance, it may have implications for other players in the United States, opening up more opportunities for other jurisdictions to drive innovation and attract capital and talent. Oscar Franklin Tan, the chief legal officer of nonfungible token protocol Enjin, agrees with the sentiment that the SEC actions only drive talent and innovation out of the US to countries with clearer rules that support responsible builders. The executive believes that progressive countries will reap the benefits, especially now that explosions in artificial intelligence and extended reality highlight the need for blockchain and genuine digital ownership.
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Doubts cast on SEC’s fairness and motivations
Some people have expressed their opinions on the potential effects of the SEC’s lawsuit against Binance and blockchain, while others in the crypto industry have questioned the motivation and fairness of the SEC’s actions.
David Schwed, the chief operating officer of Blockchain security firm Halborn, believes that the SEC’s role is to protect investors, which can be achieved through clear regulations rather than enforcement actions. He also thinks that SEC Chair Gary Gensler’s personal ambitions may be affecting his decision-making, stating that “his personal ambitions and the need to validate his stance have now superseded his core mandate.”
Alex Strześniewski, the founder of decentralized finance protocol AngelBlock, called the SEC’s actions “lazy” and believes that they do not promote proper regulation. He compared it to a teacher berating a student without providing any explanation for why their answer is wrong. Strześniewski also disagrees with the SEC’s jurisdiction over everything they are claiming to regulate.
Tim Shan, the chief operating officer at decentralized exchange Dexalot, expressed mixed feelings about the lawsuits and believes that the SEC’s actions are unfair to the crypto community. He thinks that the SEC has not provided enough guidance or clarity to the industry and is regulating through the courts, which he considers to be an unfair and inappropriate method of regulation and governance.
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