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Peter Davis

An writer at FOMOdrive

  • Jun 19, 2023
  • 3 min read

The US intensifies the persecution of crypto-exchanges: Coinbase is under attack

A day after initiating proceedings with Binance, the Securities and Exchange Commission (SEC) filed a lawsuit against another exchange.

The head of the SEC declared that cryptocurrencies are not necessary in the contemporary world.

The founder of Cardano remarked that the United States is becoming increasingly reminiscent of an Orwellian dystopia.

The SEC has brought similar charges against both Binance and the now-defunct crypto exchange FTX.

Binance has declared that it will take a firm stance against the SEC's actions.

In response to the US Securities and Exchange Commission (SEC) lawsuit, Binance has declared its intention to "vigorously" defend itself. The exchange has denied the allegation that it puts customer funds in jeopardy and is prepared to "firmly" oppose the regulator's pressure.

The SEC has filed a lawsuit against Binance and its founder Changpeng Zhao, alleging a variety of charges that have caused the price of bitcoin to plummet. According to the lawsuit, the regulator claims that Changpeng Zhao has created a "network of deception" through the use of the Binance exchange.

Furthermore, the SEC has charged the site with fabricating trading volumes and dealing in unregistered securities. Additionally, the SEC has classified 61 tokens as securities, including major assets such as SOL, ADA, MATIC and ATOM.

The Block has noted that the SEC's charges against Binance are similar to those brought against the now-defunct crypto exchange FTX and its subsidiary Alameda Research. These charges include the commingling of company and customer assets, the misuse of user funds, and the potential manipulation of the native token market.

Lawyers suggest that the SEC lawsuit against Binance could establish a major precedent for the sector, as the intricate legal framework of the trading platform could potentially weaken its stance in court.

Lookonchain reported that crypto-whales took advantage of the market dip caused by the lawsuit against Binance to purchase at a low price.

A day after proceedings began with Binance, the US Securities and Exchange Commission (SEC) filed a lawsuit against another exchange - the largest US crypto exchange Coinbase.

The agency has alleged that the platform breached securities laws, and has identified a number of tokens on the exchange that fit this definition: SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH and NEXO.

The SEC declared that Coinbase had unlawfully combined three functions - broker, exchange, and clearing agency - that are typically kept apart in traditional markets. Additionally, the regulator took action against Coinbase Earn's staking program.

Gary Gensler, the head of the SEC, stated on CNBC that the modern world does not require cryptocurrencies. He declared, “We already have crypto assets, such as the US dollar, euro, and yen. These are all digital, just like investments.”

Charles Hoskinson, the founder of Cardano, has urged the crypto industry to come together to fight against the SEC's authoritarianism in order to prevent the US government from having totalitarian control over people's finances. He believes that the SEC's ultimate goal is to introduce a digital dollar, which would give the Federal Reserve complete control over citizens' finances, thus turning the US into an Orwellian dystopia.

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