Gensler “very confident” SEC can win against Coinbase, Binance News ▸ Binance ▸ Coinbase ▸ Regulation
Gensler “very confident” SEC can win against Coinbase, Binance
Gary Gensler maintains that the SEC is working to protect investors from "hype... hucksters and fraudsters."'
2 min read
Updated: Jul. 9, 2023 at 5:04 pm UTC
SEC.gov. Remixed by CryptoSlate
U.S. Securities Exchange Commission (SEC) Chair Gary Gensler is “very confident” of winning enforcement cases against Coinbase and Binance.
Gensler confident of victory
Speaking to CNBC, Gensler said it’s up to people what they want to invest in. However, the law clearly states that service providers must adequately disclose their products and services, he said.
“Without that proper disclosure, the public can’t answer the question as to whether it’s just, as you say, counterfeiting, or it’s a scam, or something else.”
Gensler added that without appropriate discloses, investors are “just chasing after something,” which is worsened in an industry filled with “hype, and hucksters and fraudsters.”
Commenting on the SEC’s chances of winning its suits against Coinbase and Binance, Gensler pointed out that both platforms offer hundreds of tokens to trade, and the agency needs to prove just one token is an unregistered security.
“All we have to show is that one of them is a security and that they should be properly registering and having rulebooks against fraud, manipulation as an exchange, broker, and alike… And we’re very confident in this.”
SEC sues Coinbase day after suing Binance
On June 6, the SEC filed legal action against Coinbase for operating as an unregistered broker, exchange, and clearing house since 2019.
The SEC alleged that the company’s Prime and Wallet services breached applicable securities laws. The Staking Program was also mentioned as “depriving investors of material information about the program,” violating the Securities Act of 1933.
“Coinbase has for years defied the regulatory structures and evaded the disclosure requirements that Congress and the SEC have constructed for the protection of the national securities markets and investors.“
Per the Coinbase filing, the SEC listed several cryptocurrencies as unregistered securities, including, but not limited to, SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO.
In March, Coinbase said it received an SEC Wells Notice informing of pending prosecution. The company launched an international exchange for non-U.S. institutional clients in May – suggesting a changing focus outside the U.S.
The Coinbase enforcement action comes one day after Binance was sued for operating as an unregistered exchange, broker, and clearing house and misrepresenting trading controls, among other allegations.
Mentioned in this article
Nexo 
Solana 
Cardano 
Polygon 
Filecoin 
The Sandbox 
Axie Infinity 
Chiliz 
Internet Computer 
NEAR Protocol 
Voyager Token 
Dash 
Binance 
Coinbase 
Gary Gensler Author 
Samuel Wan
Samuel Wan, a finance professional turned full-time crypto content creator, values individual autonomy and personal freedom in his pursuits.
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In this article
The Nexo token is the world’s first dividend-paying asset-backed security token and is backed by the underlying assets of Nexo’s loan portfolio.
Solana
$197.198
Solana is a high-performance blockchain platform that utilizes a unique consensus algorithm called “Proof of History” to achieve fast transaction speeds and low fees.
Cardano
$0.95845
Cardano is a decentralized public blockchain and cryptocurrency project and is fully open source.
Polygon
$0.50605
Polygon, a prominent layer 2 scaling solution on Ethereum, has emerged as a multifaceted and scalable platform, enhancing the Ethereum ecosystem’s capabilities.
Filecoin
$5.27799
Filecoin is a peer-to-peer network that stores files on the internet, with built-in economic incentives to ensure files are stored reliably over time..
The Sandbox
$0.60255
The Sandbox is a virtual world where players can build, own, and monetize their gaming experiences on the Ethereum blockchain using the platform’s utility token SAND.
Axie Infinity
$6.54059
Axie Infinity is a game about collecting and raising fantasy creatures called Axie, on Ethereum platform.
Chiliz
$0.09090
Chiliz (CHZ) is a digital currency for sports and entertainment platforms.
Internet Computer
$10.7913
The Internet Computer is a seamless shared universe for reimagined software that’s secure and unstoppable, that can power a new generation of enterprise systems and internet services.
NEAR Protocol
$5.47054
NEAR is a decentralized development platform built on top of the NEAR Protocol, which is a public, sharded, developer-friendly blockchain.
Voyager Token
$0.09413
The Voyager Token (VGX) rewards users within the Voyager crypto broker ecosystem.
Dash
$39.1943
Dash is a digital currency that enables anyone, anywhere in the world to make quick, easy and cheap payments at any time without going through a central authority.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
Gary Gensler is an American government official and former investment banker who President Joseph Biden nominated to chair the U.S.