Cryptocurrency enthusiasts have raised suspicions that the SEC’s actions are advantageous to US financial firms. Prominent figures within the crypto industry have voiced support for allegations made by Pysh, suggesting collaboration between Wall Street and regulators. Meanwhile, financial firms are embracing opportunities in the crypto space despite the ongoing SEC lawsuits.
The Securities and Exchange Commission (SEC) recently took legal action against Binance and Coinbase. Binance, including its founder Changpeng Zhao, faced allegations of regulatory violations, while Coinbase, a key player in the crypto industry, was accused of operating as an unlicensed broker and exchange. These lawsuits against these prominent crypto companies have generated substantial criticism from the entire crypto community.
Attorney John Deaton, the Managing Partner of the Deaton Law Firm, aligned with other investors in stating that the SEC’s actions against Binance and Coinbase were driven by a goal to facilitate Wall Street’s efforts to keep pace with the rapidly expanding crypto industry.
Cryptocurrency Community Suspects SEC’s Actions Favor US Financial Firms:
Cryptocurrency enthusiasts have expressed concerns over the recent crackdown by the Securities and Exchange Commission (SEC) on crypto businesses, suggesting that the underlying motive might be to pave the way for United States-based financial institutions.
Allegations made within the crypto community have gained momentum, finding support from attorney John Deaton, the founder of CryptoLaw, who concurred with a tweet by Bitcoin advocate Preston Pysh. Deaton and Pysh contend that the SEC’s lawsuits targeting Coinbase and Binance are seen as strategic maneuvers aimed at equalizing the competitive landscape for Wall Street firms and facilitating their adaptation to the fast-paced realm of cryptocurrencies.
Pysh highlighted that major players such as BlackRock, Citadel Securities, and Fidelity Digital Assets have recently started pursuing Bitcoin Exchange-Traded Funds (ETFs) and spot exchanges following the SEC’s legal actions against the crypto industry leaders.
Crypto Industry Backs Allegations of Wall Street-Regulator Collaboration:
Attorney John Deaton, echoing Preston Pysh’s tweet, expressed his belief in the possibility of an “inside job” occurring between Wall Street and regulatory entities. Deaton pointed out that major financial players like BlackRock, Fidelity, Citadel, Schwab, and Deutsche Bank swiftly submitted applications for Bitcoin Exchange-Traded Funds (ETFs) soon after the SEC filed lawsuits against Binance and Coinbase.
I'm sorry, but after watching, Blackrock, Fidelity, Citadel, Schwab and now Deutsche Bank, all apply for #Bitcoin ETFs, spot exchanges, etc. only a few days after the SEC drops a TRO on Binance and sues Coinbase… how can't you think this entire past year was a giant inside job…
— Preston Pysh (@PrestonPysh) June 20, 2023
Caitlin Long, the CEO of Custodia Bank, recently made a notable observation regarding the timing of Wall Street firms entering the crypto industry amid the SEC’s rigorous crackdown. In a recent interview, Long expressed that it is not a mere coincidence that significant Wall Street firms are venturing into crypto immediately after the regulatory environment has undergone significant clearing.
Financial Firms Embrace Crypto Amid SEC Lawsuits:
The SEC recently took legal action against Binance and Coinbase, and as a result, it classified over 15 cryptocurrencies, including ADA, SOL, MATIC, and BNB, as securities. In response to these lawsuits, several notable US financial firms took steps to provide crypto-related services.
A notable development was the introduction of EDX Markets (EDX), a platform that facilitates crypto trading. Additionally, BlackRock, the world’s largest asset manager, applied for a license to establish a spot Bitcoin exchange-traded fund (ETF), while WisdomTree also submitted an application seeking SEC approval for a Bitcoin ETF.
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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