It wasn’t long time ago, that we were writing about US regulatory actions against crypto and here we go again. This time they stepped against 2 biggest centralized exchanges. But instead, it is a highly regulated TradFi, that is striked by hyperinflation recently and causing fears / bets on it’s future.
- SEC action against Coinbase
- CFTC Binance lawsuit
- Balaji Srinivasan’s bet
1. SEC action against Coinbase
Coinbase issued a Wells notice from the SEC with regards to potential violations of securities law on “an undefined portion of their listed digital assets and staking service.
The recent SEC action comes despite Coinbase’s multiple efforts to engage them, meeting with the SEC over 30 times over nine months.
Coinbase is ready to fight against the SEC by meeting them on court and their win could set a new legal precedent for crypto and drive it’s bigger adoption.
However a SEC victory against Coinbase could set a detrimental precedent and hamstring crypto adoption in the US.
2. CFTC Binance lawsuit
On March 27, the CFTC brought a complaint against CZ, Binance Chief Compliance Officer (CCO) Samuel Lim, and multiple Binance-associated entities for numerous alleged violations of the Commodity Exchange Act and CFTC Regulations.
We can just speculate, how bad it will affect Binance, in case they would lose this fight, however some predict a fatal results.
3. Balaji Srinivasan’s bet
On Friday 17th of March, Balaji Srinivasan, a man who wields considerable influence in the tech and crypto worlds, made a jaw-dropping bet: $2 million that bitcoin would skyrocket from the mid-$20,000 range to $1 million per coin within 90 days.
His main argument was, that hyperinflation in TradFi will approach fast and people will massively start to move their funds into Bitcoin.
So let’s make some summary and takeaways with passing time:
- May be kind of conspiracy, but with recent events, it seems like regulators set war on crypto.
- By preventing crisis, regulators do with money-printing and bailouts just more harm than good.
- As a result inflation is rising and usually calming central bank’s interventions seems are no more working.
- So no, not crypto, but instead TradFi is most probably something we could be feared about.
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Not financial or tax advice. This post is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This post is not tax advice. Talk to your accountant. Do your own research.