Lawsuits against Coinbase and Binance test the fate of US Crypto Markets

Photo Source - Google

"The SEC filed a lawsuit against Coinbase for not registering as a broker, exchange, or clearinghouse of securities.

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Coinbase's share price dropped by a fifth when markets opened after the SEC lawsuit.

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Binance, the world's largest crypto exchange, is also sued by the SEC for offering securities-trading services without necessary registrations.

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The core issue in both lawsuits is the classification of cryptocurrencies as securities.

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SEC chairman Gary Gensler believes most cryptocurrencies qualify as securities.

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The fate of the US crypto industry rests with the judiciary due to the lack of clear legislation or regulatory framework.

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The SEC's actions aim to protect investors and the integrity of US securities markets.

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The outcome of the lawsuits has implications for the crypto industry, including potential bans and a regulatory burden.

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