On Monday, the U.S. Securities and Exchange Commission (SEC) filed accusations against Bittrex, stating that the Seattle-based exchange did not comply with securities legislation by failing to register with the agency in multiple different regions. In the wake of this news, a noted former SEC official claimed that another major U.S. exchange could be facing similar charges amidst the rampant regulatory crackdown in the country.
Could Coinbase Be Next?
The financial watchdog has lately been targeting a number of small-to-large crypto firms operating in the United States. This has taken the form of filing lawsuits against cryptocurrency exchanges as well as suspending certain crypto services, such as products that generate yield and lending activities offered by trading platforms.
Read More: New York State’s Big Crypto Adoption Leap; Huge News For Traders
While many have condemned the SEC’s intrusive scrutiny and criticized its lack of providing regulatory clarity on cryptocurrencies — John Reed Stark — a former SEC official who served as the SEC Chief at the Office of Internet Enforcement predicted that Coinbase could be the next big crypto exchange to face the brunt of the anti-crypto crusade.
The SEC has now charged crypto asset trading platforms Beaxy and Bittrex for operating an unregistered national securities exchange, broker, and clearing agency. IMHO, Coinbase is next. Don’t shoot the messenger.https://t.co/RI8Vih2t8S pic.twitter.com/OSL3hLLRkR
— John Reed Stark (@JohnReedStark) April 17, 2023
Coinbase’s Tiff With The SEC
As reported earlier on CoinGape, the California-based crypto exchange has publicly denounced the SEC’s recent actions and urged regulators to create new regulations for cryptocurrencies rather than enforcing the existing ones. The firm had earlier mentioned that becoming SEC-compliant would require it to basically shut down all operations.
Since late 2021, SEC Chief Gary Gensler has been cautioning digital asset exchanges like Coinbase of breaching U.S. laws by allowing investors to trade cryptocurrencies — that should have been regulated as securities. Moreover, he requested the companies follow SEC regulations by becoming registered as securities exchanges and splitting off any operations that could lead to further conflicts of interest.
Earlier last month, the regulatory agency sent a Wells Notice to the firm, notifying that it plans to sue the firm for allegedly violating a slew of investor-protection laws.
Also Read: Apple’s Latest Move Could Challenge DeFi; Launches High-Yield Savings Account
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Source: https://coingape.com/coinbase-next-after-bittrex-us-sec-official/