CRYPTO Is Now A Security: The Securities and Exchange Commission (SEC) has signaled its intent to bring charges against Coinbase, the largest and most well-known cryptocurrency exchange in the United States.
SEC Set to Take on Coinbase in Lawsuit
The Securities and Exchange Commission (SEC) has signaled its intent to bring charges against Coinbase, the largest and most well-known cryptocurrency exchange in the United States. The SEC issued Coinbase with a Wells notice, although it did not specify the nature of the charges. The outcome of the lawsuit will have far-reaching implications for all of crypto.
SEC to Target Retail Staking Products
In addition to going after Coinbase, the SEC is also planning to take action against retail staking products. The regulatory war against crypto in the United States is drawing more and more companies into the fray.
Guy Technologies Fined for Selling Unregistered Security
Guy Technologies, the company behind Guy Coin, will have to pay a substantial fine to the SEC for selling an unregistered security, likely in the tens of millions of dollars. Additionally, Guy Technologies will have to ensure that Guy Coin is not sold to US investors. The SEC will demand extensive documentation, including token subscription agreements and disclosures, as well as proof of compliance.
Ethereum Could be Next in the Crosshairs
The looming launch of Ethereum 2.0’s staking feature in Shanghai next month has raised concerns that Ethereum could be the next target of SEC regulatory action.
The Baton of Paperwork Payne will then get passed on to any exchange wanting to sell Guycoin as a security.
U.S exchanges like Coinbase, Kraken, and Gemini are often at pains to point out how many licenses they hold just to operate as they do in the United States.
If a crypto asset were to be deemed a security in the United States, the upshot would be in the short term a lot of pain for the issuer and the exchanges.
Smaller crypto projects and exchanges could find it even harder to survive and could become a thing of the past if pro-crypto regulations do eventually get passed in the U.S.
The best weapon to have in your armory is decentralization. Ethereum will ultimately survive even if the SEC goes after it because it has made efforts to decentralize over time, Bitcoin.
The SEC versus Ripple and the SEC versus Coinbase and SEC versus whoever else Gary has his death ray pointed at will all have far-reaching consequences.