In 2023, the U.S. Securities and Exchange Commission (SEC) launched lawsuits against the world’s three largest cryptocurrency exchanges—Binance, Coinbase, and Kraken—marking a significant shift in the regulatory landscape for the crypto industry. These legal actions could reshape the market, which has largely operated outside traditional financial regulations.
Key Takeaways
- The SEC has filed lawsuits against Binance, Coinbase, and Kraken, accusing them of various regulatory violations.
- The lawsuits could redefine the crypto market by bringing it under SEC jurisdiction.
- The market has shown resilience, with major cryptocurrencies like Bitcoin and Ethereum rebounding quickly.
SEC vs. Binance: Accusations and Market Impact
On June 5, 2023, the SEC filed a lawsuit against Binance, accusing the exchange of several violations, including running an unregistered exchange, selling Binance-owned cryptocurrencies, and using customer funds for its own interests. The allegations are severe, drawing parallels to the now-defunct FTX exchange.
As of late November 2023, the lawsuit remains unresolved. The SEC is investigating whether Binance and its founder, Changpeng Zhao, had a
Sources
- SEC vs Binance, Coinbase, Kraken Lawsuits Usher Tough New Era, Techopedia.
- US tightens crackdown on crypto with lawsuits against Coinbase, Binance | Reuters, Reuters.
- SEC Identifies 16 Crypto Tokens as Securities in Kraken Lawsuit – Legal Bitcoin News, Bitcoin.com News.
- Max Keiser Backs SEC in Coinbase Lawsuit, Labels Altcoins Securities, CoinGape.
- US SEC Cites Terraform Case in Coinbase, and Binance Rulings, Cryptonews.
