A surge of legal uncertainties has lately engulfed the crypto news cycle. Cryptocurrency companies are making a concerted effort to remain on the right side of regulatory bodies, particularly the U.S. Securities and Exchange Commission (SEC), despite the absence of any precise regulatory guidelines so far. Amidst SEC-initiated lawsuits against massive exchanges like Binance and Coinbase, an ex-SEC official has sounded the alarm of a regulatory “onslaught” against crypto platforms. Meanwhile, a judge has thwarted the regulator’s attempt to freeze Binance US’ assets, and economist Peter Schiff has condemned the Fed for ruining the U.S. banking system. All this and more, find out in the CryptokenTop.com News Week in Review below.
Ex-SEC Internet Enforcement Head Cautions of Imminent Regulatory Onslaught: ‘Exit Crypto Platforms Now’
John Reed Stark, the founder and former chief of the Office of Internet Enforcement at the U.S. Securities and Exchange Commission (SEC), has issued a warning about an impending regulatory “onslaught” against crypto platforms. Stark holds the view that “crypto trading platforms are fraught with risks and inherently unsafe,” and he advises investors to withdraw from all crypto exchanges.
Asset Freeze Deferred as Binance US and SEC Work Towards Settlement
In Washington, a judge has granted Binance US and the Securities and Exchange Commission (SEC) time to negotiate a deal to prevent the SEC from freezing the exchange’s assets, following the regulator’s request for a temporary restraining order. The two parties have since reached a compromise.
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Peter Schiff, Economist, Claims the Fed has Damaged US Banking System — ‘It’s Bankrupt’
Peter Schiff, an economist, asserts that the U.S. banking system is bankrupt. He emphasized that the Federal Reserve has undermined the U.S. banking system, pointing to near-zero interest rates at banks while “the Fed funds rate is 5.25% and the real inflation rate is significantly higher.” Schiff had previously cautioned that the U.S. banking system is teetering on the brink of a “collapse far greater than 2008.”
Coinbase CEO Brian Armstrong: SEC Informs Us ‘All Except Bitcoin Is a Security’
Brian Armstrong, CEO of Coinbase, the largest U.S.-based cryptocurrency exchange, has shared insights on stalled negotiations with the U.S. Securities and Exchange Commission (SEC). In a recent conversation with the Wall Street Journal, Armstrong discussed the evolution of the SEC’s approach to securities regulation and how the exchange has striven to engage with regulators from the outset.
What’s your take on the ongoing legal upheaval in the crypto sphere? Could this be the genesis of mainstream acceptance for bitcoin, or does it contradict the very purpose of the protocol’s creation? Feel free to express your viewpoint in the comments.
Frequently Asked Questions (FAQs) about Cryptocurrency Regulation
What is the current state of cryptocurrency regulation?
The current state of cryptocurrency regulation is characterized by red tape, confusion, and a lack of definite clarity from regulators like the U.S. Securities and Exchange Commission (SEC). Cryptocurrency firms are scrambling to stay compliant, with major exchanges like Binance and Coinbase facing lawsuits from the SEC.
What is the regulatory “siege” warned by the former SEC official?
The former SEC official, John Reed Stark, has warned about a regulatory “siege” against crypto platforms. He believes that crypto trading platforms are high-risk and unsafe, urging investors to exit all crypto exchanges.
Has the SEC attempted to freeze Binance US’ assets?
Yes, the SEC sought a temporary restraining order to freeze Binance US’ assets. However, a judge in Washington has postponed the asset freeze, allowing Binance US and the SEC to work on reaching a settlement.
What is economist Peter Schiff’s view on the US banking system?
Economist Peter Schiff claims that the U.S. banking system is insolvent and blames the Federal Reserve for its destruction. He points to near-zero interest rates at banks, contrasting with the higher Fed funds rate and real inflation rate. Schiff has warned of a potential collapse greater than the 2008 financial crisis.
How has the SEC approached securities regulation according to Coinbase CEO Brian Armstrong?
Coinbase CEO Brian Armstrong revealed that the SEC has informed them that “everything other than Bitcoin is a security.” He discussed how negotiations with the SEC have reached a standstill and highlighted Coinbase’s efforts to work with regulators from the beginning.
More about Cryptocurrency Regulation
- Founder of SEC Office of Internet Enforcement Warns of Upcoming Regulatory Siege: ‘Get Out of Crypto Platforms Now’
- Judge Postpones Asset Freeze as Binance US and SEC Agree to Work on Deal
- Economist Peter Schiff Says the Fed Destroyed US Banking System — ‘It’s Insolvent’
- Coinbase CEO Brian Armstrong: The SEC Told Us ‘Everything Other Than Bitcoin Is a Security’