- Gensler “These trading platforms, they call themselves exchanges, are commingling a number of functions”
- Gensler “Look, we don’t need more digital currency”
- Bitcoin rebounds after falling to lowest levels since March
The SEC looks like it is playing Whac-A-Mole with crypto exchanges. The first crypto exchange to get the regulatory hammer was Binance, the world’s largest crypto exchange. The next crypto exchange to get hit with an SEC lawsuit was Coinbase and it seems like this is just the beginning.
With most exchanges offering a wide range of cryptos, it seems the regulatory hammer will hit them all as too many of the blockchain protocol cryptos are being deemed as securities by the SEC.
The global crypto market cap just got a lot smaller and as the two most popular exchanges got sued and now crypto investors will have to decide if they are confident that all their offerings will remain available to trade. With the SEC naming Solana, Polygon, Cardano, and BNB as securities, some traders might decide to abandon those positions on any major exchange, switch the position to a cold wallet, or just close out their position and reopen a Bitcoin one.
Bitcoin is becoming an interesting trade here as many crypto investors might just decide to give up on most altcoins and stick with what has worked best since cryptos were created.
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