The SEC’s cryptocurrency regulations are clear, and they need intermediaries to comply with the law, Gensler said.
The U.S. Securities and Exchange Commission (SEC) has not yet relaxed its mandate to take down major cryptocurrency companies, seizing assets from various companies. Regulators recently sued two major cryptocurrency companies, Binance and Coinbase, the latter of being an unregistered broker. Meanwhile, the SEC continues to deepen its investigation into Binance’s operations. Since 2022, market regulators have continued to restrict cryptocurrency trading activity.
SEC Wars Against Binance and Coinbase
During a recent discussion, Binance CEO Chengpeng (CZ) Zhao accused the SEC of trying to define the cryptocurrency industry. However, SEC Chairman Gary Gensler called CZ’s statement a confounding claim to the industry. Gensler has an ongoing lawsuit against FTX co-founder Sam Bankman-Fried of CZ, suggesting collusion. The chair argued that the SEC has clarified its cryptocurrency regulations and needs intermediaries to comply with the law. He added that the dollar is an acceptable currency without the need for additional digital currency.
Coinbase and Binance plan to operate in Dubai as the UAE positions itself as an international cryptocurrency hub. Coinbase is preparing to relocate its operations to the country, while Binance is looking to strengthen its core, which currently has over 700 employees. Given Gensler’s comments about the crypto industry, the SEC has been labeled as an anti-crypto company by many industry insiders. Notably, recent regulatory actions have pushed several cryptocurrency companies out of the country.
The cryptocurrency community has reacted differently to ongoing regulation in the industry. Some say the U.S dollar will gain dominance regardless, while others think the traditional application will be significantly reduced. They also said other countries that support the use of cryptocurrencies would be technically ahead of the United States.
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