More Negativity in Crypto Space due to SEC

Securities and Exchange Commission (SEC) is a government organization in the United States and this year they seem to be aggressive against crypto companies and projects. this week they have gone against the coin base but before that, they also targeted the Binance US exchange. now there is a question that what this SEC is trying to do and whether are they against crypto completely or if this is just a trap or planned conspiracy that they are trying to execute. We heard tough times this week because the SEC sued Binance Exchange. This is one of the biggest cryptocurrency exchanges in the world and it is obvious that any negative news will impact the market and might create a FUD situation.

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SEC Sued Binance US

this was expected because this year SEC has tried to target a couple of exchanges already in the US. Now they have targeted another leading exchange in the market which is Binance and its founder CZ. This time the community seemed together and they are with the exchange not with the authority even though the exchange had shared the update in public that they are going to fight the case by following whatever protocol suggested by SEC. Even Coinbase is attacked and now we are not sure which is the next one going to be on the list.

After Binance, they targeted the Coinbase exchange also. it seems like The action taken by SEC is not as per the protocol however they can follow a simple approach that they can question the exchange in a proper way rather than creating a lot of negativity in the crypto market. They have filed the case without even questioning the company and this is not the right decision taken by them because somewhere it is like a monopoly kind of situation which is more like the unfair practices followed by this government authority.

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On June 5, the SEC filed a lawsuit against Binance for allegedly offering unregistered securities. Only a day after filing the Binance suit, the commission also went after Coinbase on similar grounds, alleging that popular cryptocurrencies offered by the exchange, such as Solana, Polygon, and The Sandbox qualify as securities.

Things can be wrong and the right method is to deep down and understand that what are the reasons why such majors are taken. Even though there is a correction process but seems like this authority is not ready to do this and they are also in a hurry to get things done against the exchanges operating in the US. There was some negative impact on the market on the same day but seems like things are coming back to normal shape and we can see the prices turning green again in the cryptocurrency market.

Does it mean that the market is more mature and they are not afraid of the current situation anymore? This can be one of the possible scenarios in the market but the way prices are recovering shows that this negative news did not last for long. this is going to affect the entire crypto industry and we know that this applies to us only but the impact can be seen worldwide. I also think because of such ongoing incidents maybe another country stood up and started taking similar action against the crypto companies then it would be very difficult for these companies to operate globally.

It's good that India has not taken any action similar to this. Although the situation is not good in the country and exchanges are not able to operate because of the compliance issues and unfavorable infrastructure created by the government. It often happens in the market when we see a lot of negative news around but this time the situation is different and even the exchange is the bigger one so if something goes wrong then I believe it will impact the market badly and negatively.

In the current situation it is important to keep an eye on the market and news updates to see how things are moving forward and if something is wrong then we can stay updated with overall proceedings. A lot is going on by the SEC and for the SEC so it can be interesting to see how things are turning up in the coming months in this market.

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Posted Using LeoFinance Alpha