#SEC #Coinbase #Binance
Some of My Thoughts...

The SEC has started suing smaller projects/exchanges from over a year ago and is gradually moving towards the two largest exchanges. Although each lawsuit has its differences, the common accusation is the offering of unregistered securities, whether it's tokens, staking services, leading the company to become an unregistered securities exchange and violating the law. This is how the SEC justifies its authority.

I can't imagine anyone bigger than Coinbase and Binance being sued, which means this could be the endgame.

In general, the crypto community is outraged by the SEC's actions, but at the same time, there is a sense of relief. This is also the sentiment shared by many, such as lawyer Jake Chervinsky.

First, the crypto community's outrage is understandable. For many years, we have been demanding clarification on what is a security and what is not. We have only received vague answers stating that everything can be a security, and some lawsuits have arbitrarily labeled certain cryptocurrencies as securities without any specific framework shared by the SEC regarding why they are securities while other tokens are not.

Many exchanges have openly requested clarity and have also asked for guidance on how to register with the SEC, but these efforts have not yielded any results because there is no way to register.

However, SEC Chairman Gary Gensler has repeatedly stated publicly that the rules are clear, but the crypto community disagrees, and many members of Congress and other federal agencies also disagree. It's like being fined for speeding without knowing the speed limit.

Clearly, the community is dissatisfied with Gary Gensler, and as a result, people are turning to support the companies/projects that the SEC is targeting, whether it's Ripple, Coinbase, or Binance.

It's important to note that our support is limited in this aspect. I don't hold any significant crypto on any exchange or third-party service provider. This is a personal rule of this channel and is mentioned daily - Always hold your crypto and don't trust anyone.

Furthermore, we cannot know how Binance or Coinbase operates, and we don't know if the SEC's allegations of manipulation or fraud are true. Time will tell, but until there is specific evidence presented in court, we will continue to stand together against the SEC to ensure a prosperous future for crypto.

Second, the community also feels relieved, expecting the worst usually ends up worse than reality. The possibility of the SEC suing Binance or Coinbase was like a dark cloud hanging over us, but now it has moved beyond that stage and is finally entering the battle. The SEC cannot make laws - they can only make accusations.

Additionally, there is a common argument that because the SEC approved Coinbase's listing on a securities exchange, they "endorsed" Coinbase's business model, so it cannot be said that staking or tokens on Coinbase are securities because they were "approved."

Although this argument may seem reasonable at first glance, I don't think it has a realistic basis based on my experience in the securities market and my knowledge as a former FinRA Registered Principal (Series 24).

The SEC only reviews publicly filed risk disclosures (which are shared with investors); they do not endorse the business model. If they were to endorse the business model, then SEC would have had to take responsibility for all the securities fraud that has happened over the years. Furthermore, one of Coinbase's disclosed risks is "we may not be in compliance with current securities laws." Similarly, the SEC allows cannabis companies to go public, even though it clearly goes against federal law. Therefore, the Coinbase CEO's argument does not hold weight. Besides, everything else falls into a gray area, and this will be a fierce legal battle for both sides.