The big news of the day is that the SEC is officially filing charges against Binance (yesterday) and Coinbase (today).
Many people are saying this is the final shoe to drop for the crypto industry. A lot of naysayers are now calling for the end of crypto. Others are saying that this is a key indicator for the end of the bear market and beginning of the bull market.
Who's right? Nobody knows. But surely, we'll find out soon ™️.
SEC Files Charges Against Binance and Coinbase | Time to Freak Out?
An SEC Press Release shows the official chargest against Binance. They're saying that Binance was/is:
"operating unregistered exchanges, broker-dealers, and clearing agencies; misrepresenting trading controls and oversight on the Binance.US platform; and the unregistered offer and sale of securities."
After years of Binance essentially doing whatever they want and then eventually leaving the US over the past 2 years, this is really unsurprising news.
The one that's shocking everyone is Coinbase.
Coinbase
Coinbase is all over the news now and this caused a panic sell event in the crypto space. Nothing like Terra LUNA or FTX crashing but this is still not a good look for the overall industry.
The SEC's actions lately have been super erratic. At one moment, it seems they're meeting with people in the crypto space and looking to act in a collaborative manner. The next moment, they're backstabbing them and filing charges.
Erratic behavior is for the companies. The government is supposed to lead the conversations. They are supposed to both foster innovation while simultaneously protecting individual investors.
The problem I - and many others - have is that there needs to be regulatory clarity. Whether you're a user of crypto like me or a big company like Coinbase, you need to be able to understand what is and isn't allowed in the regulatory framework.
There is a lot of certainty for public stock market investing but very little for the crypto industry.
The ironic thing is that Coinbase filed for their IPO. They got approved by the SEC just 2-3 years ago to become a publicly traded entity.
That process is super hard. It requires countless months of paperwork and filings and transparency with the SEC.
Coinbase went through all of that and the SEC cleared them to go public... what has changed from then to now?
Well, leadership at the SEC has changed. The view of crypto has changed.
This all being said, I think it's an incredibly important moment for the U.S. We're on the verge of the printers being turned back on.
We're seeing a lot of recession fears. We're seeing people scared. We're seeing people unemployed. Record inflation. Low trust in the government and the dollar.
This is a time to foster innovation and PROFIT from it. The government has a huge opportunity to swoop into crypto and take the industry to all new heights be enacting proper rule sets and profiting off tax dollars.
It seems they are playing a losing game right now but I hold out hope that a better administration is out there and may succeed where this one is failing.
As for crypto, it will win either way. The question is: does innovation flee overseas and leave the U.S. or does the U.S. do what it used to be good at and keep it here and thriving?
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