One wave is not flat, and another wave rises again. Just one day after the SEC filed suit against Binance and Changpeng Zhao (CZ), the SEC filed a lawsuit against Coinbase in New York federal court.
In the early hours of yesterday morning, in the live broadcast of Bloomberg, SEC Chairman Gary Gensler said that it is difficult for us to trust that these casino operators (Casino Operators) will protect the interests of investors, and the institutional boundaries and business models applicable to encryption systems are in any other financial field. Never seen before, Crypto is still the Wild West (Wild West).
So far, ten U.S. states have taken legal action against Coinbase for violating securities laws, including Illinois, Vermont, Alabama, Kentucky, California, Maryland, Wisconsin, Washington, New Jersey, and South Carolina. .
Coinbase Late Night Responds to the Litigation Dispute: “The SEC and CFTC have issued contradictory statements that do not agree on what constitutes a security and what constitutes a commodity. Meanwhile, the SEC’s enforcement The method also harms the interests of the United States.
Binance.US issued an official statement, stating that the SEC’s lawsuit is groundless and will vigorously defend itself. Seek Congressional intervention to pass bipartisan legislation to create a workable regulatory system for digital assets.
Coinbase and Binance, two of the most influential companies in the crypto world, are now facing iron fist sanctions from the SEC. The crypto world is facing an unprecedented policy crisis, and is more united than ever.
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Shoot the Gensler!
Undoubtedly, Gensler is receiving strong criticism from the crypto world. Almost everyone pointed the finger at the SEC chairman who is familiar with cryptocurrencies.
Ripple CEOBrad GarlinghouseTweeting, If it wasnt clear before, we are now: Chairman Gensler is the exact opposite of his pro-innovation stance. Ridiculous. SEC is filing lawsuits to distract us from the FTX debacle attention.”
“Its embarrassing to watch an unelected bureaucrat cover up like this how he and his agencys hunger for power is so desperate.No one will be fooled by him.
A16z partner, former Coinbase CTOBalajiPosting the article on Twitter, he bluntly stated, The very fact that the SEC is fighting means that it is losing.
Balaji used this article to talk at length about the failure of the SEC, the failure of the regulatory system, and the injustice of this regulation. Odaily only excerpts the main content. He believes that the regulators of the 20th century were designed for a small number of large enterprises, but now the advent of the era of decentralization makes it difficult for regulators to effectively supervise a large number of decentralized targets. In the past, regulators played up public opinion through the media and tried to convict in the field of public opinion, so as to enhance the energy of regulators. The rise of social media has forced regulators to defend themselves in front of the public, while the media is no longer privileged, signaling the challenge of digital democracy for regulators.
As for regulators, Balaji undoubtedly has a contemptuous attitude. He said, “Compared to regulatory goals, the professional capabilities of regulators are declining, because people who understand a particular field are more likely to become builders or investors in that field, rather than Regulators.
Blockchain Association Chief Policy Officer stated, “For years the SEC has failed to provide useful guidance or effective rulemaking while falsely claiming that ‘the law is clear.’ SEC tells exchanges to ‘come and register’ but refuses to explain How to register. This is ridiculous!
Founder of ShapeShiftErik VoorheesThen he directly bombarded the SEC full of poetry:
The impotent lord struggles and struggles in his crumbling castle as civilization builds around him.His subjects were at first terrified, then annoyed, and then only found him ridiculous.secondary title
SBF, FTX and corruption?
Previously, the close relationship between the SEC and FTX was also in stark contrast to this heavy blow to Binance and Coinbase. Encryption Fund 1co nfirmation General PartnerNick TomainoHinting at the Biden administrations connection to the incident:
SBF is the second-largest donor to Bidens presidential campaign, which appointed Gary Gensler as SEC chairman.
Gary Gensler moderated a friendly meeting with executives from SBF and FTX, after FTX won the favor of the SEC, and FTX was exposed by the crypto community as one of the largest frauds in history. And the SEC is attacking sound, legitimate businesses that have been trying to cooperate in good faith with regulators for over a decade (Coinbase, Kraken)。”
Co-founder of BanklessRyan Sean AdamsThe SEC failure was also mentioned. He reminded Gensler and the SEC on Twitter:
Failed to catch FTX ($8B in fraud and bankruptcy); failed to protect Grayscale investors ($8B impairment); failed to protect borrowers from Voyager, Genesis and BlockFi ($4B+ in bankruptcy).Gensler is an incompetent bad enforcer.”
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history moves on
As one of the most well-known Bitcoin supporters in the world, the former Twitter CEOJack DorseyNot so relevant to this regulatory action, but he is also active in promoting Bitcoin to the world again: Today there are only three really large-scale censorship-resistant technologies: Tor, Bitcoin, and Nostr. Most of the worlds People dont actually care about censorship. Granted, these technologies are not easy to use yet, but eventually they will be!
Chief Policy Officer, Blockchain AssociationJake ChervinskyHe said that he has two feelings about the SECs lawsuit against Binance and Coinbase:
Outraged at the SECsUnderhand meansOutraged by blatant hostilities, the SEC is showing blatant disregard for its own mission.
Relief, the SEC finally took action and the results werent so bad?Life and business go on.
Despite the current legal crisis, the Chief Strategy Officer of the Human Rights FoundationAlex GladsteinThe outlook for the future remains promising. He said, “U.S. financial regulators may end up attacking Bitcoin.But thankfully, in America, we have democratic checks and balances.Governors, members of Congress, courts and civic interest groups, they will oppose executive power, and many politicians are about to fight back.
Perhaps, as Balaji put it in his long tweet,“History has a long arc, and right now our history is leaning toward decentralization.”
