No More Wild West: SEC Introduces New Era for Crypto
The recent action taken by the US Securities and Exchange Commission (SEC) against major crypto exchanges Binance and Coinbase has made it clear once and for all that the wild west days of crypto are over, according to a Bloomberg columnist.
Writing in an opinion piece on Tuesday, Bloomberg columnist Jessica Karl highlighted the impact of these actions and the potential consequences for the crypto market, and argued it has ushered in a new era for crypto in the US.
Karl’s piece noted that the SEC's complaint against Binance include internal chats that reveal questionable conduct, a lack of compliance, and blurred lines between Binance international and its US-based branch Binance.US.
Notably, and as pointed out by Karl, the complaint included a revealing internal note from a Binance compliance officer in 2018, saying:
"We are operating a fking unlicensed securities exchange in the USA bro."
On the other hand, Coinbase – which was sued by the SEC a day after Binance – is generally seen as a more diligent and law-abiding exchange, at least according to Karl, who called it a “by-the-book crypto exchange,” while adding:
“They do their homework. They wash the dishes. They make their bed without getting asked to do so.”
Binance, however, is a bit different, and can be compared to “Coinbase’s rough-around-the-edges cousin,” Karl argued:
“They do their homework the period before it's due. They wash the dishes but probably missed a few spots. They made their bed — but only after their mom asked.”
So, the question therefore is: Is the SEC targeting these exchanges for simply being in the crypto industry, or for engaging in illicit activities?
A turning point for crypto
While many in the crypto community consider the SEC's actions as part of a witch hunt, Karl pointed out that the crackdown also represents a turning point.
The SEC's involvement indicates a shift toward regulation and oversight in an industry previously seen as the "wild west" of finance, and the author therefore suggested that the days of unregulated activities in crypto may be coming to an end, at least in the US.
She further pointed out that the SEC's actions will have a significant impact on the future of the crypto market, and that a more regulated landscape will, in all likelihood, emerge.
Overall, the SEC's actions against Binance and Coinbase mark a turning point for the crypto industry, and the arrival of regulators means a new era of increased scrutiny and regulation has arrived, the Bloomberg columnist argued.