SEC is cracking down on crypto: Should the industry be worried?

The US Securities and Exchange Commission (SEC) has filed separate lawsuits against Binance and Coinbase alleging securities law violations. The charges claim that Binance violated regulations by allowing US customers to trade despite a ban, and that Coinbase engaged in securities trade without sufficient registration, operating as an unregistered broker and exchange. The SEC’s omission of Ethereum in its charges may be attributed to the cryptocurrency already being classified as a commodity by the Commodity Futures Trading Commission, reflecting the interplay between regulatory bodies. Despite the lawsuits, the impact on the global crypto market may be limited, as the majority of crypto trade volume occurs outside the US.