As crypto money pressure continues to increase in the USA, the latest victims of the SEC are Binance and Coinbase.
While the SEC is suing the two exchanges for violating securities laws, analysts are weighing the consequences of this lawsuit.
According to the news of Coindesk, JP Morgan analysts stated that the lawsuits filed by the SEC show the need for crypto money law in the USA.
Saying that the SEC thinks most cryptocurrencies are securities and that crypto companies should register with them, analysts argued that the SEC's lawsuits against Binance and Coinabase are not simple lawsuits.
Analysts led by Nikolaos Panigirtzoglou made the following statements in the report:
“The SEC's lawsuits against Binance and Coinbase are not simple legal actions.
While the SEC claims that some altcoins are securities in these cases, it remains unclear which cryptocurrencies will be classified as securities.
Also, with the lawsuit between the SEC and Ripple, these lawsuits are a reflection of the lack of legal clarity on crypto in the US.
In this context, without a more robust legal framework in the US, crypto activities will likely continue to move out of the US and towards decentralized entities.”
Analysts later wrote that these moves by the SEC create more urgency for US lawmakers to create a comprehensive regulatory framework for crypto by the end of 2023.
JP Morgan analysts recently stated that if the SEC's moves are found correct by US lawmakers, US-based exchanges such as Binance and Coinbase will have to register with the SEC, and most cryptocurrencies will qualify as securities.
“If these repressive moves by the SEC are approved by lawmakers, exchanges like Binance and Coinbase will have to register with the SEC.
While this will be cumbersome and costly for the crypto industry, it will yield positive results in the ability to properly regulate crypto markets and offer greater transparency and investor protection.”
*Not investment advice.