US Crypto Crackdown Intensifies in Risky Market Landscape

The current regulatory environment for cryptocurrencies in the United States can only be characterized as dangerous. The other shoe has just dropped. Gary Gensler, the chairman of the SEC, appears to be thinking only about outlawing cryptocurrency. It remains to be seen if he has the authority to carry out that. On that, the ongoing Ripple case ought to provide some clarification. 

U.S. officials have stated that they are going after every last aspect of the altcoin industry, including the projects themselves as well as the trading platforms that support them. 

Recent actions by the U.S. SEC against prominent cryptocurrency exchanges Coinbase and Binance for allegedly selling unregistered securities come as blockchain developers continue to turn outside of the country for friendlier legal systems. 

'Batman & Robin' by Gensler and Warren

SEC Gary Gensler's statement regarding the Binance charges, which he shared with journalists before submitting to the exchange, has dispelled any uncertainty over the position of American regulators. In a statement made by Gensler, it was claimed that "Zhao and Binance entities engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law." – Kevin Gensler 

Zhao claims that the SEC's actions constitute an attack on not only him but also the entire cryptocurrency sector. Zhao's future at the company he established is questionable. 

Anthony Scaramucci, a well-known investor, claimed to CNBC that Senator Elizabeth Warren and SEC Chairman Gary Gensler were driving a "Batman and Robin car together" and were the brains behind this regulatory blitz. This strategy, in Scaramucci's opinion, is "not in the best interest of the United States" or the customers Gensler has pledged to defend.  

Coinbase Responds

The SEC has taken legal action against Coinbase for allegedly breaking securities laws and for its dividend-paying staking program. In a statement made by Gensler, the firm claimed that "We allege that Coinbase, despite being subject to the securities laws, commingled and unlawfully offered exchange, broker-dealer, and clearinghouse functions."

After initially being stunned by the SEC's Wells notice, Coinbase CEO Brian Armstrong has now taken the fight to the regulator. He has said that China stands to gain from the harsh climate that crypto businesses are encountering in the U.S. market in addition to countersuing the regulator.