Crypto tokens plummeted on concern Gensler is expanding SEC crackdown
Gary Gensler, Chair of the U.S. Securities and Exchange Commission (SEC), has intensified his criticism of the cryptocurrency industry, suing major exchanges Coinbase and Binance for securities violations and casting doubt on the future of token trading. As a result, four of the 10 most valuable coins suffered a significant fall in value this week. In the lawsuits, the SEC alleged that Coinbase was acting as an unregistered broker and exchange, and that at least 13 of the crypto assets available through the company’s customers were considered “crypto asset securities.” Meanwhile, in its lawsuit against Binance, the SEC claimed that the company had commingled billions of dollars worth of user funds and sent them to a European company controlled by founder Changpeng Zhao. Coinbase’s stock prices fell 18%, while Binance said it was disappointed and had engaged in extensive good-faith discussions to resolve the issue. The development has sparked concern among crypto investors.
FAQs:
What is the SEC?
The SEC, or the U.S. Securities and Exchange Commission, is a federal agency responsible for enforcing federal securities laws, regulating the securities industry, and protecting investors.
Why has the SEC sued Coinbase and Binance?
The SEC has accused Coinbase and Binance of securities violations, with Coinbase being accused of acting as an unregistered broker and exchange, and Binance being accused of commingling billions of dollars worth of user funds.
What impact has the SEC’s actions had on the cryptocurrency industry?
The lawsuits and Gensler’s remarks about the future of token trading have caused four of the 10 most valuable coins to suffer significant falls in value. The development has sparked concern among crypto investors.
SEC Crackdown Expansion Worries Cause Sharp Drop in Crypto Tokens
Gary Gensler, the Chair of the U.S. Securities and Exchange Commission (SEC), has intensified his attack on the crypto industry by suing Coinbase and Binance for securities violations, and casting doubt on the future of token trading. This led to a sell-off in the market, with four of the top 10 most valuable coins plunging in value by at least 15% last week, according to CoinMarketCap. Gensler’s comments followed the SEC’s allegation that Coinbase acted as an unregistered broker and exchange, with at least 13 of the crypto assets available to the company’s customers considered “crypto asset securities”. In response, trading app Robinhood announced that it will no longer support trading of coins from Cardano, Polygon and Solana.