Gary Gensler, chairman of the US Securities Exchange Commission (SEC), is “very confident” of winning the enforcement cases against Coinbase and Binance.
Gensler confident of victory
talking to cnbcGensler said it is 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 cannot answer the question of whether this is just, as you say, a forgery, or whether it is a scam, or something else.”
Gensler said that without proper disclosures, investors are “just chasing something,” in an industry riddled with “hype, and hucksters, and fraudsters.”
Commenting on the SEC’s chances of winning its lawsuit against Coinbase and Binance, Gensler explained that both platforms offer hundreds of tokens for trading, and the agency only needs to prove that one token is an unregistered security.
“All we have to show is that one of them is security and that they should be properly registered and have rulebooks against fraud, exchanges, brokers and manipulation alike… and we are very confident in that.”
SEC Sues Coinbase Day After Suing Binance
On June 6, the SEC brought 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 violated applicable securities laws. Staking programs were also mentioned”Depriving investors of material information about the program,to violate Securities Act of 1933,
,Coinbase has defied and avoided regulatory structures for yearsDisclosure requirements that Congress and the SEC have created to protectNational Securities Market and Investors.,
Per coinbase filingThe 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 had received an SEC Wells notice notifying it of pending prosecution. The company launched an international exchange in May for non-US institutional clients – suggesting a changing focus outside the US
Coinbase enforcement action comes a day after Binance sued on for operating as an unregistered exchange, broker, and clearing house and misrepresenting trading controls, among other charges.