The US Securities and Exchange Commission (SEC) has targeted various crypto exchanges, affecting the companies operating in the country. Bittrex and Binance US entities had to shut their operation because of regulatory issues. It is good practice to create a regulatory infrastructure and environment through which those companies operating in this business can be compliant but unfortunately, the Security and Exchange Commission has not been fair. The crypto market is quite new and it is not mature hence it's obvious that the company dealing with Crypto might not be following the regulations because there is no clarity about it. The situation for Crypto exchanges is more or less the same in so many countries and not just us but the US Security and Exchange Commission has played unfairly and targeted some exchanges. They have not left any exchange in the US and they even started the same with decentralised exchanges.
It seems that now exchanges are also going to fight back against the unfair practices filled by the SEC. Singapore-based crypto exchange crypto.com has filed against the US SEC. As per the exchange, this agency has been overstepping its jurisdiction by regulating the cryptocurrency. It seems like now the SEC which is a government agency has to deal with lawsuits and they need to answer why they have done this which is unfair and a practice that restricts the companies operating in the crypto business.
Crypto.com CEO Kris Marszalek has shared this update on X and this could be the beginning of a lawsuit against SEC. If more exchanges follow this then possibly the US Security and Exchange Commission is going to get many lawsuit cases against them for whatever they have done in the past. As a government agency, they should have followed a different approach. Crypto is growing worldwide and the right approach could be to explore it in detail and bring the regulations that are favourable for the government as well as for the companies in this business but unfortunately, that approach has not been followed by the SEC.
https://x.com/kris/status/1843642492518051978
It will be interesting to see how things move forward after this lawsuit and if more exchanges come forward and file the case against them then probably things will be in better shape for the crypto industry. It's not just us where things are unfair towards the crypto industry instead India is also one of the countries where the crypto industry is targeted badly. Although there have been no cases against crypto exchanges the kind of rules and tax policies the government has created are not at all favourable. Crypto should be treated as the same industry as many others and its growing because it has the potential. Targeting this industry and putting a lot of restrictions is unfair.
The United States has been an example for many countries to follow because this is where a lot of innovations started for Bitcoin and crypto. If things are good for the Crypto industry in us then it will also bring the same momentum in many other countries. This time UAE has been doing great for crypto businesses and they are providing a favourable infrastructure along with easy rules and regulations which is resulting in more companies moving there.
This is interesting news and I would be tracking this closely to see what the outcome would be for this lawsuit. If this case goes against the SEC then surely it is going to be an example where following wrong practices by the government agency is not the right way and hopefully many other countries will also learn the lesson that they might have to face similar consequences if they won't be following fair practice for the crypto industry.
Thank you