According to the expert, more crypto companies could be dragged into similar lawsuits after major players such as major cryptocurrency exchanges Coinbase, Kraken and Binance are covered. The question now is, “Who’s next after Binance?”
The market has been shaken by the Binance lawsuit, the CFTC has made an interesting statement!
The crypto market has woken up to news that the Commodity Futures Trading Commission (CFTC) has filed a lawsuit against crypto exchange Binance. SEC chairman Gary Gensler then advised investors to be cautious. In this context, the U.S. Securities and Exchange Commission (SEC) has issued an investor warning to be wary of crypto-asset securities. The warning from the regulator came at a time when the traditional banking sector was in a state of crisis following the collapse of several regional banks.
cryptocoin.comAs you follow on Monday, the CFTC sued Binance, the world’s largest cryptocurrency exchange by trading volume, for violating US regulations. Bitcoin price immediately reacted to this news as BTC dropped below the $27,000 level. Interestingly, the CFTC sparked another controversy in the case by stating that Bitcoin, Ethereum, and Litecoin are commodities, contrary to Gensler’s view that all cryptocurrencies other than Bitcoin are securities. In response to the CFTC’s claim that Bitcoin, Ethereum, and Litecoin are commodities, the Litecoin team welcomed this:
Gary Gensler warns investors
The SEC warned that investors in crypto-asset securities could be deprived of important information and other important protections regarding their investments. The CFTC lawsuit alleges that Binance ‘has never registered with the CFTC in any way and is violating federal laws essential to the integrity and viability of US financial markets’. Accordingly, the SEC’s warning is about unregistered offerings in crypto-asset securities and the lack of information surrounding them. This becomes even more important as the CFTC claims that the bulk of Binance’s reported trading volume and profitability comes from US clients.
Therefore, the investor alert from the SEC can be considered a timely reminder right after the latest CFTC action on Binance. The SEC’s alert also spoke of celebrity endorsements. “Celebrity support does not mean that an investment is suitable or even legitimate for all investors,” the warning said. After all, celebrities get paid to promote investment opportunities, including crypto assets.
Peter Brandt: Is Ripple the next domino?
Factor Trading CEO Peter Brandt said that the CFTC lawsuit with Binance is imminent. He also asked if Ripple is the next big crypto company to fall victim to new regulatory actions. Ripple is battling the SEC in a lawsuit that could potentially limit which cryptocurrencies can be considered securities in the US. Accordingly, Brandt made the following statement:
It was only a matter of time before this happened to Binance. Justice is Justice. Is Ripple the next domino to topple?
Also, given the flurry of enforcement actions against crypto businesses in recent weeks, it seems likely that more crypto companies will be dragged into similar lawsuits after major players such as Coinbase, Kraken, and Binance have already been covered. XRP attorney John Deaton said that in the next two years, the SEC will likely file 200 enforcement lawsuits in the crypto market.
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