Recently, Binance and Coinbase were the targets of litigation filed by the Securities and Change Fee (SEC). While Coinbase, a significant player in the cryptocurrency industry, was accused of operating as an unregistered dealer and exchange, Binance, along with its founder Changpeng Zhao, was accused of a variety of regulatory infractions. The whole crypto community has strongly criticized these legal actions against the two leading crypto firms.
Legal expert John Deaton, the Managing Associate of the Deaton Law Firm, joined other investors in claiming that the SEC’s activities against Binance and Coinbase were driven by a desire to allow Wall Street to interact with the rapidly expanding crypto market.
Fans of cryptocurrencies believe the SEC is acting to benefit US financial corporations.
Crypto enthusiasts have expressed concerns about the Securities and Change Fee’s (SEC) most recent crackdown on cryptocurrency businesses, speculating that its ultimate goal might possibly be to pave the way for financial institutions established in the United States.
These claims have acquired support within the cryptocurrency community, with John Deaton, the founder of CryptoLaw, expressing agreement with Preston Pysh’s tweet. According to Deaton and Pysh, the SEC’s legal actions against Coinbase and Binance are seen as tactical moves to lessen the playing field for Wall Street firms and free them to adapt to the rapidly developing cryptocurrency industry.
In the wake of the SEC’s legal efforts against the industry titans, Pysh discovered that significant players including BlackRock, Citadel Securities, and Constancy Digital Property had just started applying for Bitcoin Exchange-Traded Funds (ETFs) and spot exchanges.
Reputable Individuals in the Crypto Trade Assistance Allegations of Wall Street and regulator cooperation made by Pysh
In agreement with Preston Pysh’s tweet, attorney John Deaton expressed his belief that there may be a “inside job” taking place between Wall Street and regulatory organizations. Deaton emphasized the fact that once the SEC filed proceedings against Binance and Coinbase, financial behemoths including BlackRock, Constancy, Citadel, Schwab, and Deutsche Bank immediately applied for Bitcoin Exchange-Traded Funds (ETFs).
The CEO of Custodia Financial Institution, Caitlin Lengthy, recently observed that it is not only coincidental that Wall Street firms are entering the cryptocurrency market at the same time as the SEC is waging a vigorous crackdown on it.
Financial Institutions Adopt Crypto Alternatives in the Wake of SEC Lawsuits
Recently, the SEC filed litigation against Coinbase and Binance. Additionally, the business classified more than 15 cryptocurrencies as securities through these cases, including ADA, SOL, MATIC, and BNB. Following the legal actions, several renowned US financial institutions launched initiatives to offer services linked to cryptocurrencies.
The introduction of EDX Markets (EDX), which offers crypto buying and trading, was one major advance. Additionally, the largest asset manager in the world, BlackRock, applied for a license to start a spot Bitcoin exchange-traded fund (ETF), and WisdomTree also submitted an application seeking SEC clearance for a Bitcoin ETF.