- The Dumpling
- Posts
- The SEC sues Binance 🥶
The SEC sues Binance 🥶
The TLDR of the SEC's lawsuit against Binance
GM Baos,
It seems that the SEC is making some serious moves, targeting the big players in the space, starting with Binance and Coinbase. Let's dive deeper! 🫡
The SEC takes on Binance & Coinbase…
First up, Binance is currently facing multiple charges and finding itself in hot water 😳
Today we charged Binance Holdings Ltd. (Binance); U.S.-based affiliate, BAM Trading Services Inc., which, together with Binance, operates Binance.US; and their founder, Changpeng Zhao, with a variety of securities law violations.
sec.gov/news/press-rel…
— U.S. Securities and Exchange Commission (@SECGov)
5:55 PM • Jun 5, 2023
One of the most concerning allegations that certain cryptocurrencies, like BNB, BUSD, SOL, AD, MAGIC, AXS, MANA, SAND, and more, should be classified as securities 🫣
However, Binance maintains that it has been fully cooperative and compliant thus far, and stands firmly behind its platform's principles. If it's a fight to the death they want, Binance is ready.
Now, let's delve into the potential implications if cryptocurrencies were to be deemed securities. This move would contradict the very essence of decentralization that crypto represents.
Being classified as a security comes with downsides like inflation risks, regulatory constraints, and credit considerations. Decentralization? Not so much. Bonds, stocks, and public shares can be seen as examples of securities.
The SEC has even requested asset freezes on Binance US, but Binance CEO CZ clarified that this action is not yet final and is subject to approval. If it does go through, it will only affect operations under Binance US, leaving everything else unaffected.
Clarification: this could only affects Binance.US, IF granted by the court.
It does NOT affect . Funds are #SAFU
— CZ 🔶 Binance (@cz_binance)
9:55 PM • Jun 6, 2023
Coinbase has also faced legal action and has been charged as an "unlicensed broker.” They are tangled up in the 13 securities mentioned earlier, the same ones Binance is fighting for.
Brian Armstrong, CEO of Coinbase, took to Twitter to counter the SEC's claims. He argued that the complaint primarily revolves around the classification of securities, rather than the broad-scale charges faced by Binance.
He then further emphasized that the SEC had given Coinbase the green light to go public back in 2021, making the additional charges puzzling 🧐
Regarding the SEC complaint against us today, we're proud to represent the industry in court to finally get some clarity around crypto rules.
Remember:
1. The SEC reviewed our business and allowed us to become a public company in 2021.
2. There is no path to "come in and… twitter.com/i/web/status/1…— Brian Armstrong 🛡️ (@brian_armstrong)
5:05 PM • Jun 6, 2023
Made us kek
REPEAT AFTER ME:
$MEME IS A 💩 COIN.
$MEME IS A 💩 COIN.
$MEME IS A 💩 COIN.
$MEME IS A 💩 COIN.
$MEME IS A 💩 COIN.
$MEME IS A 💩 COIN.
$MEME IS A 💩 COIN.
$MEME IS A 💩 COIN.
$MEME IS A 💩 COIN.💩 $MEME IS LITERALLY A MEME COIN WITH NO INTRINSIC VALUE, NO UTILITY, NO… twitter.com/i/web/status/1…
— Memecoin (@memecoin)
4:54 PM • Jun 5, 2023
That pretty much sums up everything.
This is important news, so let's keep an eye on it! Stay strong, tuned, & updated, BAOs!
–Bluejohn