The Securities and Exchange Commission (SEC) recently filed lawsuits against Binance and Coinbase. Binance, along with its founder Changpeng Zhao, faced accusations of various regulatory violations, while Coinbase, an important player in the cryptocurrency industry, was accused of operating as an unlicensed broker and exchange. These lawsuits against the two prominent crypto companies have garnered significant criticism from the entire crypto community.
Attorney John Deaton, who is the Managing Partner of the Deaton Law Firm, joined other investors in asserting that the SEC’s actions against Binance and Coinbase were motivated by a desire to enable Wall Street to catch up with the rapidly growing crypto industry.
Cryptocurrency Enthusiasts Suspect SEC’s Actions to Benefit US Financial Firms
Cryptocurrency enthusiasts have raised concerns about the Securities and Exchange Commission’s (SEC) recent crackdown on crypto businesses, suggesting that its true intention may be to create a pathway for United States-based financial institutions.
These allegations have gained traction within the crypto community, with attorney John Deaton, founder of CryptoLaw, expressing agreement with Bitcoin advocate Preston Pysh’s tweet. According to Deaton and Pysh, the SEC’s lawsuits against Coinbase and Binance are perceived as strategic moves to level the playing field for Wall Street firms and enable them to catch up with the rapidly evolving world of cryptocurrencies.
Pysh pointed out that notable players like BlackRock, Citadel Securities, and Fidelity Digital Assets had recently begun applying for Bitcoin Exchange-Traded Funds (ETFs) and spot exchanges in the wake of the SEC’s legal actions against the crypto giants.
Prominent Figures in the Crypto Industry Support Pysh’s Allegations of Collaboration between Wall Street and Regulators
Attorney John Deaton, in agreement with Preston Pysh’s tweet, voiced his opinion that there may be an “inside job” taking place between Wall Street and regulatory bodies. Deaton highlighted the fact that financial giants such as BlackRock, Fidelity, Citadel, Schwab, and Deutsche Bank promptly applied for Bitcoin Exchange-Traded Funds (ETFs) following the SEC’s lawsuits against Binance and Coinbase.
Caitlin Long, CEO of Custodia Bank, recently remarked that the timing of Wall Street firms entering the crypto space amidst the SEC’s extensive crackdown is not a mere coincidence.
In a recent interview Long said, “All of a sudden, we’ve got these big Wall Street firms that are coming into crypto right after the runway’s been cleared.”
Financial Firms Embrace Crypto Opportunities Amidst SEC Lawsuits
The SEC recently filed lawsuits against Binance and Coinbase. Further, the agency also classified more than 15 cryptocurrencies, including ADA, SOL, MATIC, and BNB, as securities through these lawsuits. Following the lawsuits, several prominent US financial firms made moves to offer crypto-related services.
One notable development was the launch of EDX Markets (EDX) which offers crypto trading. In addition, BlackRock, the largest asset manager globally, applied for a license to launch a spot Bitcoin exchange-traded fund (ETF), while WisdomTree also submitted an application seeking SEC approval for a Bitcoin ETF.
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