In a recent announcement, Bitstamp, known as the oldest cryptocurrency exchange, stated its plans to indefinitely cease trading of certain altcoins for its US-based clientele, commencing August 29, 2023. Tokens implicated in this suspension include high-interest altcoins such as Axie Infinity (AXS), Chiliz (CHZ), and Solana (SOL), amongst others.
In the wake of these developments, speculative eyes are turning towards the United States Securities and Exchange Commission (SEC), the regulatory body whose recent machinations could be the linchpin behind Bitstamp’s decision. These tokens have been categorized as unregistered securities in SEC’s complaints against major exchanges such as Binance and Coinbase – suggesting a consequential correlation between Bitstamp’s manoeuvres and regulatory apprehensions prompted by the SEC’s standpoint.
Bitstamp punctuated its statement by expounding its well-tuned framework adopted to continually evaluate the cryptocurrencies it provides, considering the fluid regulatory environment. The exchange has simplified the impending changes encompassing trading activities of the seven tokens. While trading for these tokens will be suspended, users will continue to retain the ability to store them in their accounts and execute withdrawals as required until August 29, 2023. In anticipation of these forthcoming changes, Bitstamp suggests users to expedite any pending buy or sell orders relevant to the affected tokens before the indicated date.
Meanwhile, Binance.US and Coinbase, two major players in cryptocurrency gamut, are facing mounting legal trials from the SEC, the crux of the accusations being a violation of securities regulations owing to unregistered securities availability for trade on these platforms. The tension amplified further when the SEC launched a lawsuit against Binance, issuing 13 charges against the exchange in tandem with its CEO, Changpeng ‘CZ’ Zhao. The charges highlight an alleged disregard for federal securities laws with accusations of engagement in unregistered crypto assets’ sale and offer.
This SEC crackdown recently shifted its crosshairs towards Coinbase, asserting that the cryptocurrency exchange failed to appropriately register as an exchange, clearing house, and broker, notwithstanding it’s offering these services to investors. This classification comprises tokens associated with Solana, Cardano, and Polygon, among others. The friction between the regulatory optimism and the functional practicality of these exchanges indeed calls for a more detailed perspective outlining the future of such crypto-exchanges, echoing the need for reconciling the ever-expanding crypto innovation with the requisite security and regulatory norms.
Source: Cryptonews
