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Globe's Lou says SEC quits playing footsie with cryptos

2023-06-12 08:29 ET - In the News

See In the News (C-*SEC) U S Securities and Exchange Commission

The Globe and Mail reports in its Saturday edition that last week, the U.S. Securities and Exchange Commission sued cryptocurrency exchanges Binance and Coinbase Global. Globe columnist Ethan Lou writes that while the legal actions were separate, the SEC's announcements -- one day after each other -- seem orchestrated for maximum impact. The first shot has been fired in what is possibly cryptoland's highest-stakes battle. The SEC is accusing the exchanges of a long list of violations, including operating without proper registration and the illegal sale of securities. Binance, in particular, has irked the regulator more: It faces 13 charges, with chief executive officer Changpeng Zhao, a Canadian, being personally charged. These charges are the culmination of years of what critics would call crypto's Wild West lawlessness. Coinbase has openly taunted the SEC several times, accusing it of not being upfront with companies on what is permissible or not, and only seeking to punish them after they act. On news of the SEC lawsuit, users withdrew $500-million (U.S.) worth of crypto in a day from Binance and $600-million (U.S.) worth from Coinbase. How the cases resolve will define the crypto industry for years to come.

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