SEC Chairman Gary Gensler drew parallels between Binance and FTX, emphasizing the regulator’s vigilance and indicating potential broader implications for the industry.
Gensler’s remarks serve as a stark warning to the crypto industry, urging caution and expressing concerns over holding funds on Binance amid the “web of deception.”
He also suggested that registered investment advisors holding client assets on the exchange may be in violation of compliance regulations. Experts view the SEC’s actions as an all-out assault on the industry. And that the SEC is asserting its authority as the “sheriff of crypto.”
The lawsuits have raised concerns for Binance’s presence in the US, potentially foreshadowing significant regulatory shifts affecting the entire crypto landscape.
Both exchanges face substantial challenges and uncertainties in navigating the regulatory landscape. The outcomes of these lawsuits will have far-reaching implications, not only for Binance and Coinbase but also for the broader industry as it grapples with increasing regulatory scrutiny.
