The US crypto community is facing turbulence as authorities continue to clamp down on the industry. Recent events suggest that the US government has been secretly targeting crypto companies and top crypto exchanges with false allegations in an attempt to move crypto out of the country.
The Securities and Exchange Commission (SEC) has been particularly active, targeting many crypto firms for selling unregistered securities on exchanges, but has not clearly stated which cryptos are securities and which are not. Now, it appears that the SEC and other regulatory bodies are trying to take down crypto firms and move them out of the US.
The Anti-Crypto Movement
Binance.US and Voyager had a deal opposed by the SEC and DOJ. Several crypto-related banks like Silvergate, Silicon Valley Bank, Signature Bank have gone bankrupt one after the other. Coinbase has also been given a “Wells Notice” by the SEC. Binance is now being sued by the Commodity Futures Trading Commission (CFTC) for money laundering and insider trading. If these leading crypto firms fall in the US, other crypto companies are likely to follow suit and relocate outside the US. It remains to be seen how the situation will develop in the coming weeks and months.
Related: Binance Could Lose U.S. Market Amid Crypto Regulatory Crackdown: Report – Coinpedia Fintech News
Is Ether A Commodity?
The U.S. Commodity Futures Trading Commission (CFTC) has reiterated that it considers ether to be a commodity, rather than a security. This announcement comes after CFTC Chair Rostin Behnam testified before Congress, stating that ether falls under the regulatory authority of the CFTC. In response, ether and other tokens in its orbit have seen significant gains.
The CFTC’s Crackdown on Binance: Will Asia Benefit?
The CFTC’s recent action against Binance has raised concerns among traders and crypto enthusiasts who are calling for a comprehensive framework for crypto in the U.S. While the move may have annoyed some traders who use Binance, it has sparked broader discussions about the need for a regulatory framework for cryptocurrencies.
Pro-crypto Congressman Emmer’s Comments Give Hope
U.S. Rep. Tom Emmer (R – Minnesota) introduced the Securities Clarity Act in 2020, which proposed a new legal category called “investment contract asset” to create a framework for crypto. “We’re going to focus obviously on legislation, and I think it’s going to be to place key guardrails around the industry,” Emmer said. “Market structure guardrails. Stablecoin guardrails. Things like that.”
Will Asia Emerge as a Possible Destination for Crypto Businesses?
In the midst of this uncertainty, Asia is emerging as a possible destination for crypto businesses looking to thrive without being weighed down by excessive regulation.
