The storm of SEC lawsuits lashing at flagship crypto exchanges Binance and Coinbase is sweeping through the community like a tempest. Accusations of insider dealings have exploded, erupting from the crypto market’s heavyweights.
The titanic claim suggests that Wall Street and government regulators might have orchestrated an insidious plan, bringing into question the integrity of these actions.
SEC Lawsuits Against Binance and Coinbase
The United States Securities and Exchange Commission (SEC) recently delivered a body blow to Binance, the world’s largest crypto exchange. Indeed, it accused the platform and its founder, Changpeng Zhao, of multiple regulatory infractions.
According to the SEC, Binance and Zhao engaged in “an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law.”
The alleged crimes range from mishandling billions of dollars in user funds to contriving schemes that let deep-pocketed American investors sidestep Binance’s international exchange’s regulatory framework.
“Through thirteen charges, we allege that Zhao and Binance entities engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law,” said Gary Gensler, the SEC’s chairman.
However, the SEC’s assault did not stop there. Coinbase, a vital pillar in the crypto industry, also found itself in the regulator’s crosshairs. The firm allegedly acted as an unlicensed broker and exchange.
The allegation asserts that Coinbase’s prime brokerage, exchange, and staking programs violate securities laws.
“We allege that Coinbase, despite being subject to the securities laws, commingled and unlawfully offered exchange, broker-dealer, and clearinghouse functions,” affirmed Gensler.
These lawsuits have made the crypto market suspicious, sparking debates about the SEC’s intentions.
Crypto Leaders Claim Inside Job
Among the swirling questions, a haunting hypothesis emerges. Could this all be an inside job? Are regulators aiming to wipe the crypto exchanges off the map to clear a path for Wall Street to dominate?
High-profile figures in the crypto space have weighed in, casting suspicion on the timing of Wall Street’s sudden interest in the crypto sphere.
Preston Pysh, the co-founder of the Investor’s Podcast, postulated that recent applications from Wall Street titans such as Blackrock, Fidelity, Citadel, Schwab, and Deutsche Bank for Bitcoin ETFs and spot exchanges suggest an orchestrated move.
“How can’t you think this entire past year was a giant inside job coordinated between the Wall Street parasites and government regulators so they could catch-up,” said Pysh.
Similarly, Michaël van de Poppe, an esteemed crypto trader, highlighted the uncanny synchronicity of these applications and the SEC’s actions against Binance and Coinbase.
Van de Poppe’s sentiment is echoed by Will Clemente. The co-founder of Reflexivity Research questioned the sudden interest of these Wall Street powerhouses in a supposed “worthless Ponzi scheme.”
All [of these firms] trying to get a piece of Bitcoin/Crypto because they think that it’s a ponzi scheme that’s worthless because it has no intrinsic value and is only used for money laundering, right?,” said Clemente.
On the other hand, Professor J.W. Verret pointed out the potential damage that the SEC’s legal assault could bring to investors. Verret compared the fallout from the lawsuits to the devastation caused by Bernie Madoff’s infamous Ponzi scheme.
The confluence of these factors paints an unsettling picture. It is a narrative that implies an insidious power play between Wall Street and government regulators. It has the the potential to upend the crypto industry.
As the storm continues to rage, one thing is clear: the future of crypto is at a critical juncture. Indeed, its fate is now held in the hands of entities far removed from the spirit of decentralized finance.
Top crypto platforms in the US | November 2023
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