The recent SEC lawsuit against Binance and Coinbase has unified the crypto industry and sparked various reactions from professionals across different sectors. Some believe that the SEC’s actions may drive crypto companies away from the US, while others criticize the regulatory body’s approach as being “unacceptable” and “lazy.”
According to Kristin Smith, CEO of the Blockchain Association, the SEC’s way of regulating the crypto space is unacceptable due to its anti-crypto stance. Nevertheless, the industry and the US Congress are working to develop effective regulations, but the SEC continues to distract from these efforts by listing assets and denying public engagement.
Paolo Ardoino, Chief Technology Officer of stablecoin issuer Tether, thinks that the concerns of companies targeted by the SEC should be listened to. Ardoino argues that the uncertainty of rules and guidance in the US is becoming a common theme, even among the biggest supporters of crypto in the country.
Ted Shao, CEO of Turbos Finance, also shares Smith’s sentiment and believes that the SEC’s actions show that they are against the entire Web3 space – not just centralized exchanges (CEXs). This stance could potentially push crypto players to seek more crypto-friendly jurisdictions and weaken consumer confidence in crypto within the US.
Insider Intelligence crypto analyst Will Paige highlighted that the recent lawsuits indicate the SEC’s intention to police the crypto space through enforcement, even in the absence of a regulatory framework. This could potentially knock down the already weak consumer confidence in cryptocurrencies in the country.
Ben Caselin, Chief Strategy Officer at crypto exchange MaskEX, believes that the SEC’s actions could affect other players in the US, opening up opportunities for other jurisdictions such as Hong Kong, Dubai, or even El Salvador for driving innovation and attracting capital and talent.
Oscar Franklin Tan, Chief Legal Officer of nonfungible token (NFT) protocol Enjin, agrees that the world will not wait for the US to make up its mind on crypto. He states that the SEC’s actions only drive talent and innovation out of the US and that progressive countries will reap the benefits.
However, some crypto professionals question the fairness and motivations behind the SEC’s actions. David Schwed, Chief Operating Officer of Blockchain security firm Halborn, believes that the mandate of the SEC is to ensure the safeguarding of investors, which can be done through clear regulations instead of enforcement actions. Alex Strześniewski, founder of the decentralized finance (DeFi) protocol AngelBlock, described the SEC’s actions as lazy and believes they do not drive proper regulation forward.
The lawsuits against Binance and Coinbase have undoubtedly generated debate in the crypto community. While the SEC’s actions remain divisive, the ultimate impact on the industry and regulations remains to be seen.
Source: Cointelegraph
