Riding The Wave News Summary 153
One-Two Punch Finally Registers SEC View on Binance, Coinbase, Rest of Crypto, US Financial Services Committee sets date to discuss future of crypto, & more
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Table of Contents
Tweets
One-Two Punch Finally Registers SEC View on Binance, Coinbase, Rest of Crypto
US Financial Services Committee sets date to discuss future of crypto
Binance.US Pulls Several Trading Pairs in Wake of SEC Lawsuit
Tweets
https://twitter.com/100trillionUSD/status/1666475982239178755
https://twitter.com/WhaleChart/status/1666482660464549894
https://twitter.com/WatcherGuru/status/1666072338797039616
https://twitter.com/WatcherGuru/status/1666057948206968832
https://twitter.com/WatcherGuru/status/1666179626404642819
https://twitter.com/balajis/status/1665055054473342976
https://twitter.com/WatcherGuru/status/1665759112393523207
https://twitter.com/WatcherGuru/status/1665741316318429184
One-Two Punch Finally Registers SEC View on Binance, Coinbase, Rest of Crypto
The U.S. Securities and Exchange Commission (SEC) tore off crypto’s bandage this week, with its back-to-back enforcement actions against two of the most prominent digital assets platforms, Binance and Coinbase (COIN), finally establishing its legal argument against the industry and setting up the future court fights that could decide everything.
Apart from the “extensive web of deception” alleged in the securities regulator’s lawsuit against Binance, the enforcement double feature also overlapped considerably in the SEC’s basic argument against the crypto business model’s clash with longstanding securities laws. Virtually every business activity conducted by the crypto platforms needs to be registered with the agency and must follow securities regulations under the watchdog’s oversight, the agency contends in these actions and in months of previous enforcement and speeches, and virtually every crypto asset they handle should also be registered as securities.
The SEC accused both Binance and Coinbase of operating unregistered exchanges, and offering the sale of unregistered securities, including Binance’s own digital assets: BNB and the Binance USD (BUSD) stablecoin.
The regulator went after the companies for operating simultaneously as exchanges, brokers, dealers and clearing agencies without registering in any of those categories in the U.S. That’s been a constant complaint of SEC Chair Gary Gensler, that crypto firms offer one-stop services that tend to set up conflicts of interest with the companies’ customers.
“They attempted to evade U.S. securities laws by announcing sham controls that they disregarded behind the scenes so that they could keep high-value U.S. customers on their platforms,” Gensler said in a statement. “The public should beware of investing any of their hard-earned assets with or on these unlawful platforms.”
At this stage, the crypto sector has turned virtually all of its hopes toward the U.S. Congress to finally force new crypto-specific regulations, such as those suggested last week by Republicans in the House of Representatives.
The draft bill revealed in the House “is a step forward to not only craft effective regulation for digital assets, but also rein in Chair Gensler’s relentless crusade,” said Kristin Smith, CEO of the Blockchain Association, a crypto advocacy organization in Washington.
US Financial Services Committee sets date to discuss future of crypto
The United States House of Representatives Financial Services Committee has scheduled a hearing on crypto to discuss its future and provide clarity for the digital assets ecosystem.
On June 6, Representative Patrick McHenry, the House Financial Services Committee chairman, announced a full committee hearing titled: “The Future of Digital Assets: Providing Clarity for the Digital Asset Ecosystem.” The hearing is scheduled for June 13 at 2:00 pm Eastern Time. According to the committee, the hearing will be live-streamed on its website.
The Financial Services Committee oversees the country’s economy through its supervision of individual reserve banks and the Federal Reserve Board, the United States Treasury, the capital markets, and currency production and distribution.
While the committee did not provide more detailed information about what will be discussed in the hearing, members of the crypto community are hoping it will address some of the most pressing issues in the space.
House Hearing Tackles Non-financial Use Cases for Crypto
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