• The SEC sued Binance and Coinbase this week, presenting the industry with both further analysis on why it thinks certain cryptocurrencies are securities and its biggest test to how cryptos may be regulated in the U.S. going forward.
• These may well be the cases that define how cryptocurrencies are regulated in the U.S., at least until Congress passes some legislation (if that happens).
• While Coinbase CEO Brian Armstrong is making the TV and conference circuit, saying Coinbase does not plan to shut down its staking service, Binance.US announced Wednesday it would halt trading on over 50 different token pairs most of which were traded against tether (USDT).
SEC Sues Binance and Coinbase
The SEC sued Binance and Coinbase this week, presenting the industry with further analysis on why it believes certain cryptocurrencies are securities and its biggest test yet to how cryptos may be regulated in the U.S.
Defining Crypto Regulation
These lawsuits could potentially define how cryptocurrencies are regulated in the U.S., at least until Congress passes some legislation (if that happens). The complaints have been made; now we must wait for how both companies will defend themselves against these charges.
Coinbase vs Binance Responses
Both exchanges have responded differently so far; while Coinbase CEO Brian Armstrong is speaking out publicly about their plans not to shut down their staking service despite pressure from 10 state regulators, Binance US announced a halt of trading on over 50 token pairs mainly traded against Tether (USDT).
Looking Ahead
As we look ahead to what is next for these companies, we can only hope that more clarity will arise from these cases as they help shape future regulations surrounding cryptocurrency usage in America.
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