Decoding the Battle: SEC vs. Binance - Unveiling the Future of Crypto

Introduction

We cannot live quietly on a simple day in the realm of crypto without noises and turbulence. The market is boring and flat lately, but we have a lot of action with the SEC!

Their purpose and mission is to protect customers' money. In reality, now they are attacking crypto companies without clarity. It is wrongdoing what they are trying to accomplish personally.

Crypto companies beg for years for clear regulations in the crypto sector. You see the EU, have some advance with the MICA framework.

Better to have something than nothing!

Binance vs SEC

The modus operandi is always the same as the SEC behavior. Binance keeps doing business as usual and received a letter stipulating what they have done wrong.

Some crypto traded on their platform from the SEC perspective are considered securities. It is not clear what is the real definition of security for crypto with the regulations that exist today.

We need to have a new and clear framework in place for cryptoassets like tokens, NFTs, etc... You cannot interpret the way you think is right and attack without any notice crypto companies that want to be legit.

Those companies bring innovation with a lot of value for crypto investors. They provide a way for people to purchase, sell, and build wealth easily without the need to think too much.

It is already a difficult ecosystem to master for a typical investor who just wants to have a presence in the crypto realm...

Immediate consequences of this attack from the SEC

From the headlines I check rapidly in the last 24 hours, 700 million was removed from the Binance liquidity. This reaction is people are scared of not being able to access their funds in the worst-case scenario.

What people have not learned!

You just leave crypto assets that intend you to trade. Not assets that you keep for the long term. It is not the first or last behavior like this we are going to expect.

Bitcoin has crashed from this market sentiment. When BTC is in the red, the rest of the market follows the pattern!

We love the volatility!

If you can't handle it, you are in the wrong market...

What to expect next?

This is a legal battle that can take years before something can materialize. Those legal fees from the government are paid with people's taxes...

In the case of Binance, I believe you can reduce the legal fees from your business expense. But I am not quite sure...

This is very costly for a company to battle because you need to hire the best layers. You need to fight with the interpretation of words and laws in place.

The results are years of energy spending, stress, and suffering for the crypto industry.

The US seems to fight for innovation in its territory and make sure crypto is moving to other international jurisdictions.

My perspective

I believe is not good for the whole industry's constant attacks from the SEC entity. No matter what they are trying it will not change the path of crypto penetration and prosperity.

People understand the risk of crypto and if they intend to purchase them. They know the risks and rewards associated with it.

I hope this battle will not last years and both parties can find a fast settlement.

PS: It is my personal opinion and I am not a financial advisor. Always do your own research.