The crypto community is divided on the purposes and objectives of the US Securities and Exchange Commission (SEC) by concluding that Binance’s subsidiary in the country was operating an unregulated stock exchange.
Mike Alfred, a crypto influencer who started the conversation on Twitter, argued that the SEC was not trying to regulate securities because it wanted to harm people or the cryptocurrency industry. Citing the bankruptcy cases of Celsius, Blockfi, Voyager and FTX, Alfred concluded that cryptocurrency enthusiasts had already been hurt and that the regulator was instead looking to mitigate further declines.
Famed youtuber Ben Armstrong argued that it was not just Binance.US but all asset managers in the Web3 industry. A Twitter user with the username @SuperElonMars commented that the SEC and its chairman, Gary Gensler, aimed to change precedents outlawed. Since exchanges are not selling initial coin offerings, SuperElonMars quoted the judge in the library case as saying that secondary sales are not securities.
i’m sure exchanges aren’t selling initial coin offerings, and as the judge in the library case has stated secondary sales are not securities
so the @SECGov and @GaryGensler are trying to change precedent outside of the law
this is why the sec needs to go
— SuperElonMars (@SuperElonMars) March 4, 2023
In another conversation, crypto analyst Adam Cochran claimed that the US regulator was playing a game of “brutal 4D chess” against Binance, the largest cryptocurrency exchange. The analyst believes that the SEC’s move was calculated and designed to force Binance to settle the matter or face the prospect of being discovered by a US agency.
SEC suggesting Binance is unregistered securities exchange, on grounds BUSD is unregistered security is brutal 4D chess.
Binance has to settle, or else they’d be open to discovery by a US agency…
— Adam Cochran (adamscochran.eth) (@adamscochran) March 4, 2023
Last month, the SEC issued a Notice from Wells to Paxos Trust Co, the issuer of Binance’s BUSD stablecoininforming the firm of impending action for selling an unregulated security.
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