SEC is in Action After Suing Binance, Here Comes Coinbase Exchange

[Inwestour]

They really don't let the CEOs of these exchanges live in peace, there must be something that they think is wrong with the operations of these exchanges and they must immediately submit to them. Even Coinbase is not exempt from this attack and I think that other exchanges operating in America will also be hit by them. I can't understand why these boomers are so passionate about attacking exchanges. Okay, regulation is needed, but does it have to be this strict? don't they think that the impact of their attacks also affects the crypto assets of Americans? they should regulate these exchanges but still have little tolerance because the impact of their decisions caused billions of dollars of losses in the crypto market.

Regulators cross the line, you need to know when you are working for good, and when your actions are harmful. It seems that now it is the second option, for the development of cryptocurrencies in the United States.

It seems to me that this will not end until the regulators lose some high-profile lawsuits. It was also strange for me to see how they decided to bring the case with Binance to court, because it was always an exchange that was in contact with regulators. Well, it's their choice, and I think that in the end it will play against them, you can't fight with so many opponents at the same time.

[1714930770]

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[siniminomorocomunisakito]

The intensity of the SEC's actions is seen as a potential power play and a response to the digital coin's growing popularity. This suggests that regulatory actions can create uncertainty in the market and influence investor sentiment. Regarding the potential effect on Bitcoin price, pointed out that while there may be short-term disruptions, the long-term implications of regulatory action should not be overlooked. This could increase the likelihood of a shift towards decentralized exchanges (DEXs) in response to regulatory hurdles and the outcome of future regulatory actions and their impact on the crypto market is uncertain.

[palle11]

It is still unclear who really benefits from this whole story

Have we not considered that for sometime btc have not had a major hit on it to have such effect to pull it down and get it ready for the bull after halving because the whales will buy in and who are the whales should now be our question to ask. Sec is playing a suspicious roll on this. Yesterday some big hodlers sold after the news of the lawsuit and later bought back, I think the wise investors are waiting for this as opportunity.

[noorman0]

They really don't let the CEOs of these exchanges live in peace, there must be something that they think is wrong with the operations of these exchanges and they must immediately submit to them. Even Coinbase is not exempt from this attack and I think that other exchanges operating in America will also be hit by them. I can't understand why these boomers are so passionate about attacking exchanges. Okay, regulation is needed, but does it have to be this strict? don't they think that the impact of their attacks also affects the crypto assets of Americans? they should regulate these exchanges but still have little tolerance because the impact of their decisions caused billions of dollars of losses in the crypto market.

As these exchanges expand business into various forms, the evaluation and approach of interested agencies will stop at nothing to regulate more. I'm actually not surprised by this incident and I think it's good to start not caring about the two of them, they are the same entity that will only govern and control. This is for the health of your crypto assets in the long run.

[Davidvictorson]

Coinbase exchange was already alleged by SEC in the past and warned too but who knows what got into SEC this week, like they are after every exchange possible. I think its pressure from the top, maybe someone advised that dealing with these centralized exchanges might control the inflation in US (again-->who knows what got into them).

My understanding of this is that the SEC is not trying to kick Coinbase out of the U.S they're not trying to ban them from offering any kind of cryptocurrency services they are probably looking to do that with Binance. However the SEC is going try to harm  the crypto industry but Bitcoin is doing fine. In addition to removing your bitcoin from any centralized exchange, you should dollar cost average your investments if you haven't already. I highly encourage it, especially in situations like this when dips occur. You should also consider adding additional bitcoins if you haven't already.

[irsykes]

there is a market that plays unfairly but has never been investigated by the SEC, maybe someone understands this market. why was the big market used to be BINANCE, COINBASE which was the main target of the SEC. I won't mention which market, but that market often creates coin manipulation to attract investors who end up unlucky. and many people suggest on social media but no one listens. this is a question mark the SEC does not have a solid foundational purpose for me

[Fortify]

As we all know that SEC has sued US Binance Exchange and its CEO (CZ). For what they have been sued is already covered (Another Fud or Its Reality? BTC is Down Again). Now as of 6th June 2023, SEC has sued Coinbase too. Why? That's what i will write here.

Now what impact it will make on BTC price?-->(i think not that much as of compared to Binance, yet the Coinbase market dropped 15% though but still BTC and the market facing the impact too but lesser than Binance). Who is next on the list?-->(That depends on who is against the security act). Because from that press release, one thing is sure congress has put pressure on SEC to follow the Securities Exchange Act of 1934 (source--> you can find at the first paragraph of the second page of the document). From what i think is, they are trying to make entry opportunities so that they could benefit from BTC halving (just saying, as other factors are also included though).

It is definitely surprising to see the latest action against coinbase, but not really unprecedented as they occasionally take action against banks that they think have overstepped the mark. No financial institution should ever feel immune to such action. On the flip side, I slightly agree with the response from coinbase that the regulator should spend more time carving out correct regulation than trying to punish a publicly traded company that is trying to work within some currently gray areas. However crypto seems like an easy target because they are less financially or politically connected than other institutions and this may play a part in this crackdown.

[Velemir Sava]

there is a market that plays unfairly but has never been investigated by the SEC, maybe someone understands this market. why was the big market used to be BINANCE, COINBASE which was the main target of the SEC. I won't mention which market, but that market often creates coin manipulation to attract investors who end up unlucky. and many people suggest on social media but no one listens. this is a question mark the SEC does not have a solid foundational purpose for me

Indeed, if viewed visually from its duties and functions, the SEC focuses its investigations on various factors, including market size, trading volume, complaints from investors, and suspicious activity. They target specific markets or exchanges based on this consideration. It is possible that some people feel that certain markets are playing unfairly or manipulating prices. It could be in that direction.

[irsykes]

there is a market that plays unfairly but has never been investigated by the SEC, maybe someone understands this market. why was the big market used to be BINANCE, COINBASE which was the main target of the SEC. I won't mention which market, but that market often creates coin manipulation to attract investors who end up unlucky. and many people suggest on social media but no one listens. this is a question mark the SEC does not have a solid foundational purpose for me

Indeed, if viewed visually from its duties and functions, the SEC focuses its investigations on various factors, including market size, trading volume, complaints from investors, and suspicious activity. They target specific markets or exchanges based on this consideration. It is possible that some people feel that certain markets are playing unfairly or manipulating prices. It could be in that direction.

many people complain that the mistake is telling on social media and mentioning the name of the market, but there are no results that lead to a clear direction. and there is no interrogation from the government's point of view, this makes something less in terms of the duties of a person. why does the SEC put so much effort into interrogation with the concept of quality of securities but the core of the mission is different from the outside of the concept

[Silberman]

As we all know that SEC has sued US Binance Exchange and its CEO (CZ). For what they have been sued is already covered (Another Fud or Its Reality? BTC is Down Again). Now as of 6th June 2023, SEC has sued Coinbase too. Why? That's what i will write here.

Now what impact it will make on BTC price?-->(i think not that much as of compared to Binance, yet the Coinbase market dropped 15% though but still BTC and the market facing the impact too but lesser than Binance). Who is next on the list?-->(That depends on who is against the security act). Because from that press release, one thing is sure congress has put pressure on SEC to follow the Securities Exchange Act of 1934 (source--> you can find at the first paragraph of the second page of the document). From what i think is, they are trying to make entry opportunities so that they could benefit from BTC halving (just saying, as other factors are also included though).

It is definitely surprising to see the latest action against coinbase, but not really unprecedented as they occasionally take action against banks that they think have overstepped the mark. No financial institution should ever feel immune to such action. On the flip side, I slightly agree with the response from coinbase that the regulator should spend more time carving out correct regulation than trying to punish a publicly traded company that is trying to work within some currently gray areas. However crypto seems like an easy target because they are less financially or politically connected than other institutions and this may play a part in this crackdown.

It is obvious this is a political move, the economy is not doing well and the US does not want people to think of bitcoin as some sort of safe haven in which to store their wealth, they need that money to be part of the fiat economy so they can monitor and tax it, so they are trying to scare people away from this market by attacking one of its most obvious weak points, as the most popular exchanges are centralized and they are an easy target for an institution like the SEC.

[Mame89]

IMO, maybe they (SEC) have the excuse of attacking all Krypto coins (besides BTC) because XRP has a big potential to win on the grounds that many coins other than XRP have a non-security background. So the goal of the SEC is just to try to close the line with that excuse.

But whatever is more interesting behind this case there is a value (+ -) whether cz is really guilty / not. it will have absolutely no effect on the bitcoin price. In my opinion, it's better to play it safe. remember to enter crypto using money that has nothing to lose. Also remember the SBF case, before the wolf was found out, people also called it robinhood in the crypto world, the Luna stable coin case but still a rug pull too. The point is you still have to be careful when storing coins on exchanges.

Binance.US will remove approximately 100 trading pairs effective June 8, 2023 at 9am PDT and temporarily suspend OTC trading. They assure that funds are safe and deposits and withdrawals continue to function as normal.

https://support.binance.us/hc/en-us/articles/15133607064983-Binance-US-Will-Remove-Select-Trading-Pairs-Has-Paused-OTC-Trading

[Gyfts]

It's going to be people's fault if Bitcoin goes lower because of this news, I know it's a fact and not a FUD but it shouldn't affect the market much, oh yes, I forget that every humans have different reactions, we are the reason why some news affects the market condition anyway.

I believe this is a good opportunity to buy some Bitcoin right now but if a bigger manipulation is already in play then this go even more bloodier in the coming days, I do hope not because it was a big fight for Bitcoin to get to 25k to 27k range in past months.

I still don't know why many people rely and trust centralized crypto exchanges more than having their bitcoin in their custodial wallets, a small bad news here and there, everyone is rushing to move their assets out of the exchange, it's a shame.

It's not peoples fault if they're reacting to regulators coming down on the exchanges through nonsensical lawsuits by the SEC. The U.S. has the power to shut down any company within its jurisdiction because they can throw expensive lawsuits at companies that drag on for years.

None of us have seen the specifics of these lawsuits, or underlying evidence -- if there's legitimate merit to them then I'm prepared to eat my words, but until proven otherwise, this is just the SEC going on a powertrip trying to stunt Bitcoin's growth. Whether we would like to admit it or not, exchanges are central to Bitcoin's growth. If the SEC begins shutting down exchanges then we're done for.

Thankfully, I'm seeing some elected officials push back: https://twitter.com/SenLummis/status/1666181240167317507 We'll see how it plays out.

[pawel7777]

How often do lawsuits like this materials into a full-blown closure of exchanges? Binance, out of all the existing exchanges today, seem to be the most experienced when it comes to legal pressure like this. It's like CZ has been brushing off all those lawsuits and all those pressures mounted onto him and his platform, and I'm sure he'll end up just paying some fines and fixing whatever there is to fix as mandated by the SEC.

It all depends on what the SEC's true intentions really are. If they're just a tool of the government and are part of a serious crackdown on the crypto market, then things are not looking great. Even if Binance (and Coinbase) settle and/or pay the fines, SEC could keep harassing them forever by declaring other coins as securities.
But if it is just a one-time extorsion action, that's maybe intended to show that they are doing "something" after their failures with FTX - then we might see things going back to normal.

[letteredhub]

What I am curious about on this whole issues from the SEC is that won't this attacks on cryptocurrency industries somehow drive away or reduce crypto investors like the whales out of the US? Or is this another targeted conspiracy scheme just to alter the price of the leading cryptocurrencies for a fall in price for some gains. I don't know.

[Majestic-milf]

 I wonder what Gary hopes to achieve from all this tho. A congratulatory tap on the back, maybe? This dude's just got it hot against crypto exchanges, and it's quite surprising coming from someone who was actively in support of the growth of crypto. Funny how times have changed.  I'm starting to feel he needs to spell out the type of compliance he wants from these exchanges because I remember when Coinbase was given a Wells notice sometime in March which has not been cleared as the SEC refused to state or clarify what a reasonable crypto rules.
 This action by the SEC proves one thing; the government would do anything to be in control.
 
 

[Baofeng]

You cannot not feel sorry for Coinbase. As far as I know they tried really hard to be compliant, even tried to get a court to force SEC to give a clear answer on what is and isn't a security, but all they get is a lawsuit against them.

Binance also get hit with massive funds outflow from its US business of $1.4bn since the lawsuit. I'm sure they survive though, but will struggle to return to the same levels.
https://www.reuters.com/technology/bitcoin-steadies-above-25000-binance-sec-lawsuit-rattles-investors-2023-06-06/

Yeah and Coinbase already hint that if they US government will continue to pursue them, then they might opt to go out already. So interesting development here, two of the biggest exchanges, Coinbase and Binance.US is now being sued by SEC and CFTC. Although at close look at the lawsuit, it doesn't mentioned BTC at all, at least the case against Coinbase. It's about securities projects that SEC thinks these exchanges facilitated.



So I guess with this precedence, any exchanges that is operating in the US might get sued. Just a matter on who's next on the list of SEC.

[retreat]

They really don't let the CEOs of these exchanges live in peace, there must be something that they think is wrong with the operations of these exchanges and they must immediately submit to them. Even Coinbase is not exempt from this attack and I think that other exchanges operating in America will also be hit by them. I can't understand why these boomers are so passionate about attacking exchanges. Okay, regulation is needed, but does it have to be this strict? don't they think that the impact of their attacks also affects the crypto assets of Americans? they should regulate these exchanges but still have little tolerance because the impact of their decisions caused billions of dollars of losses in the crypto market.

Regulators cross the line, you need to know when you are working for good, and when your actions are harmful. It seems that now it is the second option, for the development of cryptocurrencies in the United States.

It seems to me that this will not end until the regulators lose some high-profile lawsuits. It was also strange for me to see how they decided to bring the case with Binance to court, because it was always an exchange that was in contact with regulators. Well, it's their choice, and I think that in the end it will play against them, you can't fight with so many opponents at the same time.

I also see the SEC's actions as unreasonable. Even though the regulator should give a warning to exchanges and then they will improve their operations if something is not in accordance with the rules. But what the SEC did, they went straight to court and gave the impression that this exchange was 100% guilty, that's very unreasonable. They didn't give any warning letter or instructions whatsoever, they just sent a letter and stated that these CEOs are to go to court for the accusations they are accusing. This is clearly a discriminatory act against cryptocurrencies.

[Andrija Branislav]

How often do lawsuits like this materials into a full-blown closure of exchanges? Binance, out of all the existing exchanges today, seem to be the most experienced when it comes to legal pressure like this. It's like CZ has been brushing off all those lawsuits and all those pressures mounted onto him and his platform, and I'm sure he'll end up just paying some fines and fixing whatever there is to fix as mandated by the SEC.

It all depends on what the SEC's true intentions really are. If they're just a tool of the government and are part of a serious crackdown on the crypto market, then things are not looking great. Even if Binance (and Coinbase) settle and/or pay the fines, SEC could keep harassing them forever by declaring other coins as securities.
But if it is just a one-time extorsion action, that's maybe intended to show that they are doing "something" after their failures with FTX - then we might see things going back to normal.

The intentions of regulatory bodies like the SEC can indeed have a significant impact on the crypto market and that's for sure. However, it is difficult to know their true intentions, but their actions are usually driven by existing and relevant investor protection and law enforcement. Settlements and fines are common results of regulatory investigations. The implications of these actions can vary, such as changing business practices or increasing compliance measures.

[kryptqnick]

It's sad to see that the SEC is targeting a significant part of the crypto industry in the US, but Binance and Coinbase are large and serious companies (which do their best to comply with all sorts of regulations and operate legally), so I truly hope that they'll manage to put up a good fight and perhaps even win against the SEC, which would set a good precedent for the future. Otherwise, big companies will probably leave the US to avoid being sued, and that can be challenging for crypto users in the US.

[lionheart78]

I wonder if all companies move out of US jurisdiction, what will happen to the US economy?  I believe these cases are somehow maliciously done, and it is obviously a power tripping stating that SEC is still in control.  Though I tried to believe that SEC are just doing their job, I cannot remove the doubt about the intention of the SEC in suing the largest cryptocurrency exchanges.

I believe if ever the case goes to a full-blown exchange shutdown, these exchanges are able to establish a new one even before the verdict is released.  I believe this case is long-term and may take years before a decision will take place.  So there is plenty of time for these exchange owner to setup a new exchange and shift their focus of operation there.