Crypto Carnage Looms: SEC Leans On Terraform Case To Hammer Coinbase, Binance
Portfolio Pulse from Murtuza Merchant
The SEC is using a favorable judgment in the Terraform Labs case to strengthen its legal actions against Coinbase and Binance. The SEC's lawsuit against Coinbase cites a group of tokens it believes should be classified as unregistered securities, while in a separate case against Binance, the SEC is leveraging the same judgment to support its arguments against Binance's stablecoin BUSD and other services.
January 04, 2024 | 10:05 pm
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Binance's stablecoin BUSD and services like BNB Vault and Simple Earn are under the SEC's scrutiny, using parallels from the Terraform Labs case to strengthen its position.
The SEC's attempt to use the Terraform Labs judgment against Binance's stablecoin and services could result in regulatory challenges for Binance, potentially affecting the trust and utility of BNB and related services, which may negatively impact its value.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Coinbase is facing increased legal pressure from the SEC, which is using a recent judgment to argue that various tokens traded on Coinbase are unregistered securities.
The SEC's reference to a favorable judgment in its case against Coinbase regarding unregistered securities could lead to increased regulatory scrutiny and potential legal challenges for Coinbase, negatively impacting investor sentiment and possibly the stock price in the short term.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90