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Peter Davis

An writer at FOMOdrive

  • Jun 19, 2023
  • 3 min read

The SEC will freeze Binance.US assets. Investors wary of "FTX #2"

The US Treasury and the Commodity Futures Trading Commission (CFTC) are calling for increased authority to regulate crypto assets.

The SEC proceedings involving Binance and Coinbase will determine the future of cryptocurrencies.

More than $1.4 billion was withdrawn from Binance and Coinbase.

Investors are worried that another crisis similar to the one caused by the downfall of FTX could occur.

Crypto companies are advised by lawyers to depart from the United States.

CoinGecko reported that median trading volume on decentralized crypto exchanges (DEXs) has increased by 400% in the last two days, likely due to the SEC lawsuit against Binance and Coinbase. Approximately $800 million was withdrawn from Binance and $600 million from Coinbase.

Rostin Benam, the head of the Commodity Futures Trading Commission (CFTC), has stated in a speech to the US Congress that the CFTC needs the power to create anti-fraud regulations for the cryptocurrency market, as the cryptosphere is "plagued by deception and manipulation."

Janet Yellen, the US Treasury Secretary, declared that there are certain deficiencies in the cryptocurrency regulatory system that must be rectified. She further stated that the Treasury Department is "prepared to collaborate with Congress to implement additional oversight".

The US Securities and Exchange Commission (SEC) has issued a directive to prohibit Binance.US accounts. Despite this, representatives of the site have assured that all user funds are secure.

Following an SEC lawsuit that could potentially put Coinbase's business model in jeopardy, Bank of America has given the stock a "below average" rating.

Timothy Massad, the ex-Chairman of the U.S. Commodity Futures Trading Commission (CFTC), has stated that the destiny of the crypto sector is contingent upon the result of the legal proceedings between the Securities and Exchange Commission (SEC) and the exchanges Binance and Coinbase.

Kevin O'Leary, the host of the TV show Shark Tank, declared that cryptocowboys will soon become a relic of the past as the SEC (Securities and Exchange Commission) has thrown a "legal lasso" on the two biggest crypto exchanges, Binance and Coinbase.

Brian Quintenz, the head of policy for crypto fund a16z, has expressed his concern that the SEC's lawsuits against Binance and Coinbase demonstrate that the SEC is taking drastic steps to damage the crypto industry, which could potentially impede innovation and drive crypto companies out of the US.

The chief legal officer of Coinbase believes that the regulatory approaches of the US Securities and Exchange Commission (SEC) are damaging the competitiveness of the United States.

Gresham law firm has declared that the current regulatory climate in the United States is not suitable for crypto businesses to thrive.

Charles Hoskinson, founder of Cardano, stated that the SEC's case against Binance is driven by the regulator's "political and philosophical opposition" to the very concept of cryptocurrencies.

The past year has seen a decrease in the number of crypto companies on the Forbes Fintech 50 list, from nine to five. This decrease in the crypto market was accompanied by a $1.4 trillion drop in the market value of cryptocurrencies, due to the failure of FTX, Genesis, BlockFi, Three Arrows Capital, and other crypto companies.

The Philippine Securities and Exchange Commission announced that the introduction of digital asset regulation in the country will be postponed until the end of 2023 in order to further examine investor protection.

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