SEC is cracking down on crypto: Should the industry be worried?

economictimes.indiatimes.com:

crypto exchange. The next day, the SEC sued Coinbase, alleging misconduct by America’s largest crypto exchange. The SEC's actions against both Binance and Coinbase were not entirely unexpected, given the signals (threats, warnings) from the SEC in recent times.

However, what took the markets by surprise was the SEC's decision to go after both exchanges simultaneously, which intensified the impact of its actions.What are the charges? Binance and its founder, Changpeng Zhao, are alleged to have violated securities laws by allowing U.S. customers to trade on Binance.com, despite the ban on US-based users, commingling billions of dollars in violation of regulations. Coinbase has been accused by the SEC of participating in the securities market without proper registration and operating as an unregistered securities exchange, broker, and clearing agency.

One intriguing point is that the SEC did not mention Ethereum (ETH) in its lawsuits against Binance and Coinbase. This omission could be attributed to the fact that the Commodity Futures Trading Commission (CFTC) has already classified ETH as a commodity and not a security. The CFTC's declaration regarding Ethereum's status may have influenced the SEC's approach in these particular lawsuits.

This demonstrates the complexity and interplay between different regulatory bodies when it comes to determining the classification of cryptos. The obvious question is whether traders or investors should worry. In one word, no.