SEC Launches Two Lawsuits in 24 Hours Against Crypto Trading Platforms
The US Securities and Exchange Commission (SEC) has filed lawsuits against two cryptocurrency trading platforms in the past 24 hours, casting doubts on the future of retail crypto trading in the country. The regulatory authority is taking a hard stance against crypto trading companies that it believes are not operating within the confines of the law.
Lawsuits Filed Against Trading Platforms
The first lawsuit was filed yesterday against an online digital asset exchange, claiming that the platform’s tokens were actually securities and had not been properly registered. The platform allegedly operated as an unregistered securities exchange, which is in violation of US securities laws.
The second lawsuit was filed against a mobile banking and trading app that offers cryptocurrency trading. The SEC claimed that the app offered illegal unregistered securities, which were being sold in ICOs (Initial Coin Offerings).
SEC Cracks Down on Crypto Regulations
The SEC has been taking a stricter stance on cryptocurrency exchanges and trading platforms in general, as it seeks to regulate the industry. As the crypto industry has grown, the regulatory authority has taken more action against companies that it believes are not complying with US securities laws.
Implications for the Future of Crypto Trading in the US
The SEC’s actions are likely to have a significant impact on the future of cryptocurrency trading in the US. With these lawsuits, the regulatory authority is sending a clear message that it expects companies to adhere to securities laws, even if they are operating in the crypto space.
As the regulatory environment becomes clearer, investors and traders will need to remain vigilant about the companies they are dealing with. Only time will tell how these lawsuits will affect the crypto industry in the US, but it is clear that the SEC is committed to bringing a greater level of scrutiny to the sector.
The US Securities and Exchange Commission has filed two lawsuits in the past 24 hours against two separate cryptocurrency trading platforms, claiming that they had offered illegal unregistered securities, in violation of US securities laws. This is part of the SEC’s continued crackdown on the cryptocurrency industry, with the aim of bringing it under greater regulation. The implications of these lawsuits are not yet clear, but it shows that the SEC is taking a much stricter stance on crypto trading platforms and companies. Investors and traders need to be aware of the regulatory environment in the US as it develops further.
Original Article: https://www.wired.com/story/coinbase-binance-lawsuits-put-crypto-on-ice/