• Breaking: Binance.US suspends USD deposits, warns of fiat withdrawal pause
Binance.US has announced the suspension of United States dollar deposits and has notified its customers of an incoming pause to fiat (USD) withdrawal channels as early as June 13.
On June 9, Binance.US announced that it was forced to take action amid “extremely aggressive and intimidating tactics” from the United States Securities and Exchange Commission.
The firm noted that, in an effort to protect its customers and platform, it is suspending USD deposits. Furthermore, Binance.US is “notifying customers that our banking partners are preparing to pause fiat (USD) withdrawal channels as early as June 13, 2023.”
• Gary Gensler: Crypto market is like 1920s stock market, full of ‘fraudsters’
In a June 8 speech at the Piper Sandler Global Exchange & Fintech Conference, United States Securities and Exchange Commission (SEC) Chair Gary Gensler compared the current crypto market to the 1920s U.S. stock market, saying that it is full of “hucksters,” “fraudsters” and “Ponzi schemes.” Just as Congress cleaned up the stock market by enacting securities laws, the current SEC can also clean up the crypto market by applying these laws, he argued.
n the talk, Gensler praised the Securities Act of 1933 and Securities Exchange Act of 1934, claiming that these laws allowed the U.S. securities markets to “thrive” over the next 88 years. He argued that the “crypto securities markets” of today should also benefit from these laws, as they are not “less deserving of the protections” the laws provide.
• EU watchdog targets crypto ads on Instagram, YouTube, TikTok, Twitter
On June 8, the European Consumer Organisation (BEUC) — an umbrella group for 46 independent consumer organizations from 32 countries — published a report titled: “Hype or harm? The Great Social Media Crypto Con.“ In the 20-page document, the group states that consumers are not fully aware of the risks associated with crypto.
The report draws examples from Instagram, YouTube, Twitter and TikTok, calling them “key players” in crypto advertising. In the case of Facebook, it notes that crypto advertisements skirt rules, forbidding the promotion of non-licensed financial platforms. The announcement stated:
“TikTok, Instagram, Twitter & YouTube are responsible for allowing misleading advertisements of crypto to multiply through ads & influencers. This is an unfair commercial practice, exposing consumers to serious harm (loss of significant amounts of money).“
• Robinhood Joins Coinbase in Saying It Tried to ‘Come In and Register’ Like SEC Wanted
With Coinbase (COIN) and Binance accused of running illegal exchanges by the U.S. Securities and Exchange Commission (SEC), the latest industry testimony in the U.S. House of Representatives this week revealed that companies had desperately sought the agency’s help to properly register but were turned away.
SEC Chair Gary Gensler has a go-to crypto invitation to the firms that are operating without the agency’s approval and oversight, which he’s repeated so often it’s become a messaging mantra: They just need to come in and register.
Robinhood Markets’ chief compliance lawyer told lawmakers that the popular trading firm was trying to register as a special-purpose broker for digital assets. Dan Gallagher, a former SEC commissioner who has spent a career in securities and corporate law, couldn’t get the agency to guide Robinhood into crypto compliance, though he said the staff seemed to want to help.
• US district court issues summons for Binance CEO Changpeng Zhao over SEC action
The United States district court in Washington, D.C. issued a summons for Binance CEO Changpeng Zhao on June 7, just two days after the Securities and Exchange Commission (SEC) formally sued the exchange for alleged unregistered securities operations.
While details are scarce at this time, the summons viewed by Cointelegraph did not appear to have been marked as served, and an immediate request for information was not returned by the SEC or Binance.
Zhao won’t necessarily have to appear in person; however, he is legally required to respond to the summons once served.
• Coinbase Becomes the Latest Target of SEC: Accused of Unregistered Brokerage and Securities Violations
After the U.S. Securities and Exchange Commission (SEC) sued Binance, it has now filed a legal case against the San Francisco-based exchange, Coinbase. The SEC alleges that Coinbase breached multiple securities regulations and has been functioning as an unregistered broker since 2019.
Regarding the classification of individual assets as securities, the regulatory body contends that coins like ICP, AXS, CHZ, FLOW, DASH, VGX, FIL, NEXO, NEAR, ADA, SAND, SOL, and MATIC meet the criteria of being investment contracts. “We allege that Coinbase, despite being subject to the securities laws, commingled and unlawfully offered exchange, broker-dealer, and clearinghouse functions,” stated SEC chair Gary Gensler.
Concluding Notes:
- Binance.US suspends USD withdrawals
- Gary Gensler: Crypto market is like 1920s stock market
- The BEUC attacks social media platforms
- Robinhood is at risk
- US district court issues summons for Binance CEO
- Coinbase is the new target ot the SEC
