Since the U.S
Since the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Coinbase and Coinbase, the Cryptocurrency, which is regarded as unregistered securities by US regulators, has exceeded 120 billion US dollars.
The SEC mentioned more than ten types of tokens in the two major lawsuits and claimed that these tokens were securities that should have been registered with the SEC.
In this lawsuit against Yeon'an, the token BNB issued by Yeon'an, with a market value of US $44 billion, and Stablecoin BUSD, Cardano's ADA, Solana's SOL, Polygon's MATIC, Filecoin's FIL, and Algorand's ALGO are all classified as securities. In the lawsuit against Coinbase, NEAR tokens and Dfinity's ICP tokens are considered securities.
Plus other tokens such as XRP mentioned earlier,The SEC has now classified over $120 billion in tokens as unregistered securities.For comparison, according to CoinGecko's data, the global market value of Cryptocurrency is about $1.1 trillion. During the boom of COVID-19, its market value once exceeded $3 trillion.
If the SEC wins the lawsuit, the entire coin industry is bound to undergo a huge change, and the industry's operation must align with regulations. Where will major players go then?
Two major crypto exchanges are being sued, and the SEC is taking a tough stance
Earlier, the SEC announced that it would sue two major Cryptocurrency exchange.
On Monday, the SEC formally sued the Cryptocurrency exchange, which has the largest trading volume in the world, and its CEO Changpeng Zhao for violating U.S. securities laws and regulations, believing that it sold the currency and Stablecoin BUSD without registration, and accusing it of participating in a wide range of fraud, conflict of interest, lack of disclosure and deliberate evasion of the law network.
Earlier on Tuesday, the SEC announced that Coinbase, the largest Cryptocurrency exchange in the United States, was being sued for violating securities regulations, accusing Coinbase of allowing users to trade Cryptocurrency that is essentially unregistered securities, ignoring the supervision of securities laws and evading relevant information requirements.
Coinbase and Coinbase are the two largest Cryptocurrency exchange in the world, accounting for half of the global Cryptocurrency trading market. The lawsuit against these two giants marks the harshest regulation of the encryption market by US regulatory authorities in history.
After the SEC filed a lawsuit, it demanded an urgent freeze on the assets of the Coin Security US platform on a global scale, which dealt another blow to the coin industry.
SEC Chairman Gary Gensler has a tough stance. He stated in an interview with CNBC on Tuesday:
We don't need more digital currencies. We already have digital currency. It is called the US dollar, known as the euro or Japanese yen. They are all digital now.
Gensler has repeatedly warned that the Cryptocurrency exchange and the tokens it trades may violate U.S. federal laws, pointed out that most Cryptocurrency meet the conditions of securities, and urged the platform to complete the registration as soon as possible.
After the collapse of FTX in November last year, which sparked a currency storm, Gensler's attitude became even stronger.
He also said that the US securities law benefits the investing public and should not be different from Cryptocurrency. These platforms and intermediaries are required to comply with regulations.
If the SEC wins the lawsuit
If the SEC wins the lawsuit, the operation mode of the entire Cryptocurrency market may be completely subverted.
Take the Coinbase case as an example.
SEC not only thinks that Coinbase should register its tokens as securities, but also says that Coinbase should register with SEC as an exchange, dealer and clearing institution. Coinbase's pledge plan - that is, customers can purchase Cryptocurrency and get a return when using the Cryptocurrency in the blockchain - should also complete the registration.
Therefore,Registering its tokens as securities alone is far from solving the current problem.
In addition, many cryptographers believe that it is not even feasible to register these assets, because the standard registration protocol does not cover the unique characteristics of Cryptocurrency itself.
Coinbase also argued in a recent letter to the SEC that core pledge services do not constitute investments, and there is currently no feasible registration path for such services.
Coinbase once pointed out that,If the industry operates in full accordance with the existing regulatory framework, many things related to Cryptocurrency will not work.
For example, customers can now directly access exchanges, while in regulated exchanges, they can only achieve this through distributors.
Coinbase also noticed some issues,For example, according to current rules, real-time settlement of securities is not applicable to blockchain, and parallel transactions of securities and Bitcoin may not necessarily comply with current rules.
In addition, when the two giants are frequently hit by regulators, players in the Cryptocurrency market may face another major reshuffle.
According to research firm CCData, Coin On has lost a quarter of its market share in the past three months, and Coinbase is also losing market share.
The overnight US stock market saw a double-digit decline in Coinbase's stock price, with a drop of nearly 21% at the beginning of the trading session. The decline narrowed to 12.1% at the end of the trading day, setting a new low since May 4th.
The ones that really hurt are Coinbase, Kraken, and other US exchanges,They must decide whether to delist or notAnd American Market maker, who may have to stop making market on some tokens classified as securities. " Jeff Dorman, Chief Investment Officer of digital asset firm Arca, said.
However, Dorman predicts that the lawsuit will not have a long-term impact on token prices as they are still traded on offshore exchanges.
After the SEC filed a lawsuit, Filecoin fell by about 10%, BNB fell by about 9%, and other named tokens also suffered losses. In addition, Cryptocurrency, which was not named, was dragged down, and Bitcoin fell by about 6%.
Coinbase has previously stated that it may not delist tokens classified as securities by the SEC until the court makes a final ruling.
We do not trade securities, "Kraken said in a statement. For each asset we list, our team conducts a comprehensive risk and safety assessment, including a comprehensive legal and compliance process. We will continue to closely monitor precedent rulings in this and other cases.
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