SEC Continues Rampage Against Crypto-based Digital Currencies

The US Securities and Exchange Commission (SEC) has yet to relent on its mission to pull down major cryptocurrency firms, having confiscated assets from various firms. The regulatory body has recently sued two top cryptocurrency firms, Binance, and Coinbase referring to the latter as an unregistered broker. Meanwhile, SEC has continued to deepen its investigation into Binance's operation. Since 2022, the market regulator has continually restricted crypto trading activities.

SEC Wars Against Binance and Coinbase

In a recent discussion, Chengpeng (CZ) Zhao, Binance’s CEO accused SEC of trying to define the crypto industry. However, Gary Gensler, SEC’s Chairperson has referred to CZ’s statement as an industry-muddying claim. Gensler still has an ongoing case against Sam-Bankman-Fried, FTX’s co-founder and CZ, suggesting a conspiracy act. The Chairperson argued that SEC has clarity in crypto regulation and needs intermediary bodies to comply with their laws. He added that the dollar is an acceptable currency with no need for extra digital currencies. 

Coinbase and Binance plan to operate in Dubai since UAE has positioned itself as an international crypto hub. Coinbase is preparing to move its operating base to the country while Binance aims to strengthen its roots which currently boasts over 700 employees. Considering Gensler comments on the crypto industry, SEC has been tagged as an anti-crypto firm by many industry players. Notably, the recent actions of the regulatory bodies have pushed several crypto firms away from the country.

The crypto community has reacted differently to the ongoing regulation of the industry. While some noted that the US dollar dominance would strengthen regardless, some believe the traditional application will reduce significantly.  They also stated that other countries supporting the use of crypto will be technologically ahead of the US.