SEC’s Lawsuits Against Binance and Coinbase bad news for the Crypto Market Giants

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The cryptocurrency industry is facing a watershed moment with the Securities and Exchange Commission (SEC) launching lawsuits against two major players. Crypto market giants, Binance and Coinbase are facing multiple accusations. 

This marks a significant shift from the past decade of rapid growth and promises of revolutionizing the financial landscape. The SEC’s actions have raised concerns about the legality of these exchanges, their offerings of unregistered securities, and their failure to register as brokers.

 Analysts are now pondering the potential impact on the entire crypto industry and whether these lawsuits could force these businesses to reconsider their operations in the United States.

Crypto market giants 

Both Binance and Coinbase are accused by the SEC of operating unlawfully. The allegations include offering unregistered securities to users and failing to register as brokers, violating multiple securities regulations. The lawsuit against Binance goes further, alleging misuse of customer funds and the facilitation of wash trades to artificially inflate trading volumes through affiliates controlled by CEO Changpeng Zhao.