Cryptocurrency, Economy, Finance, News, Regulation, Stablecoins

SEC Attempts to Clampdown Cryptocurrencies – Details

The Securities and Exchange Commission has been doing the most trying to invade the crypto space to clamp it down. Since the appointment of Gary Gensler, all the commission’s activities have been targeting the virtual crypto asset industry.

The commission has been pleased to respond at every chance that practically all virtual digital assets are securities. However, clear and transparent guidelines and regulations on stablecoins, staking, decentralized finance actions, or farming have yet to be formulated or implemented.

Securities and Exchange Commission and others are attempting to get to the virtual crypto asset companies where it will hurt the most and bring down stablecoins utilized with cryptocurrency pairs.

Stablecoins Controversy

Although, the commotion over the Securities and Exchange Commission offering Paxos with a Wells Notice has stirred a chain of events that has likely assisted the initial coin, Bitcoin, to reach its latest highs.

With Paxos and its distribution of the Binance dollar stablecoin under scrutiny by the regulators, all the attention turned to other stablecoins. The Securities and Exchange Commission would prioritize more than just one of them, following the speculations of the Securities and Exchange Commission going after USDC started to emerge.

Should those eagerly reserving their USDC have considered if the Securities and Exchange Commission can come after a fully trusted and governed entity like Paxos, why not do the same for USDC and Circle?

According to Cointelegraph, as soon as word about the events was out, a significant amount of USDC flowed into Bitcoin, and following data from Lookonchain, 1.6 billion dollars in funding has flooded the crypto market over the recent past, influencing the price rise of other stablecoins such as the Bitcoin.

Crypto is Here to Stay

Crypto is not just something that can be brought down with impunity. This massive space of the most advanced technological development and ambitious talent is here to stay. Smart cash goes where it is well treated, which undoubtedly will not be with the legacy financial system. So the most encouraging inventions in the virtual digital asset industry are attracting attention and funds.

And even if this has to transfer offshore as the blunt and heavy-handed tool of law enforcement, popularly known as the Securities and Exchange Commission, makes the existence of these stablecoins more and even more challenging as days pass by.

Binance Transfers 400M Dollars to Other Exchanges

Following recent reports, executives at Binance had private access to a company-owned bank account. In addition, it is reported that Binance had moved funds worth 400 million dollars to an exchange platform headed by Changpeng Zhao himself.

Furthermore, the move was initiated in late 2020, and more than four hundred million dollars were purported to have been transferred to an exchange platform headed by CZ, Merit Peak Ltd.

The transactions were initiated from a Silvergate Bank account belonging to Binance United States at the beginning of 2021. Although it is not certain whether the moved assets belonged to the Binance United States customers or not, and since the company made it clear to the public that its customer deposits were reserved at Silvergate Bank, the major reason for the transfer is still yet to be uncovered.

These events might paint a bad picture of Binance while investors anticipate listing Floki on their platform. However, the coin has a total market cap of 496 million dollars, and it is worth noting that the meme coin is currently listed on KuCoin.

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