U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler is “very confident” he will win the enforcement action against Coinbase and Binance.
Gensler confident of victory
talk to CNBCGensler said it’s up to people what they want to invest in, but said the law is clear that service providers must properly disclose their products and services.
“Without proper disclosure, the public cannot answer the question whether this is just a forgery, as you say, or a scam, or something else.”
Without proper disclosure, Gensler added that investors were “just chasing something” and the situation would be exacerbated in an industry rife with “hype and scammers and scammers.”
Commenting on the SEC’s chances of winning the lawsuit against Coinbase and Binance, Gensler said that both platforms offer hundreds of tokens for trading, with regulators saying only one token is an unregistered security. He said he had to prove it.
“All we have to show is that one of them is a security and that they are properly registered and have a rule book against fraud and manipulation as an exchange, broker, etc. and We are very confident in this.”
SEC sues Coinbase the day after it sues Binance
On June 6, the SEC filed a lawsuit 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. For the staking program, seedepriving investors of material information about the program;” is violated. Securities Act of 1933.
“Coinbase has defied and evaded regulatory structures for many years. Disclosure requirements created by Congress and the SEC to protect information. National stock market and investors.“
Every Application to Coinbasethe SEC has listed several cryptocurrencies as unregistered securities, including but not limited to: Sol, ADA, Matic, Phil, Sand, AXS, CHZ, Flow, ICP, Near, VGX, Dash, And NEXO.
Coinbase announced in March that it had received an SEC Wells notice of pending prosecution.The company launched an international exchange in May for non-U.S. institutional clients, signaling a shift in its focus outside the U.S.
Coinbase’s enforcement action will take place the day after Binance goes into effect. sued Among other things, it is suspected of operating as an unregistered exchange, broker and clearing house and misrepresenting trading controls.
