Crypto Companies Clash with SEC: Tensions Rise as Regulatory Framework Suffocates Market

US crypto firms contemplate relocation amid lawsuits, while industry leaders criticize SEC's aggressive stance.

- Advertisement -

The dispute between the US authorities and crypto companies is turning into a tug-of-war over the “suffocating” operating framework in the crypto market imposed by the US Securities and Exchange Commission (SEC).

The hard line adopted by the SEC to regulate this particular monetary industry has caused a strong reaction in the crypto lobby, which is facing lawsuits for illegalities.

The companies reiterate that they are now seriously considering moving their operations outside the US – a scenario, however, that can hardly be confirmed, considering the significant market share they hold in that country, according to CNBC.

More than 50 million Americans own cryptocurrencies, with the sector booming despite the constant ups and downs in the crypto market and the intense volatility in prices, as is typically the case with bitcoin.

Reactions

Typical is the statement from the CEO of Coinbase, the company that runs the cryptocurrency exchange platform. Brian Armstrong speaks of a “lone crusade” with “harsh actions” against some crypto companies.

He accused the SEC chairman of having radically changed his attitude towards cryptocurrencies and the companies that produce them, far from the fervent support he had shown for the industry when he was still a professor of economics at MIT.

“The SEC is a bit extreme here… I don’t think it’s necessarily trying to regulate the industry as much as it’s maybe trying to rein it in… There’s a backlash and I think that’s not good for the US,” he said in a statement from Dubai.

In the same vein, statements from the CEO of Ripple, the well-known blockchain payment company. Brad Garlinghouse expressed regret over the harsh measures taken by the SEC in the crypto market, noting: “The difficult thing about this is that you have a country that I think has put politics over policy and that’s not a good decision if you’re trying to invest in the economy.”

READ NEXT

Previous Articles:

- Advertisement -
- Advertisement -
- Advertisement -

Latest

‘Paddington 2’ Stuntman Loses £50,000 in Elaborate Crypto Scam

Film stuntman Felix Leech lost nearly £50,000 to sophisticated cryptocurrency scammers operating through WhatsApp and fake trading platforms.Scammers used tactics including small initial payouts,...

Clore to Burn 300M Coins, Caps Rewards Following POS Transition

Clore to burn 300 million tokens, reducing maximum supply from 1.3 billion to 1 billion coins following their upcoming Proof of Stake transition.Server rewards...

Goldman’s Next CEO Waldron Pushes for Bitcoin Services as Demand Rises

Goldman Sachs COO John Waldron, positioned as potential CEO successor, is advancing the firm's Bitcoin initiatives in response to rising client demand.The investment bank...

DWF Labs Launches $250M Fund for Mid and Large-Cap Crypto Projects

DWF Labs launches a $250 million investment fund targeting mid and large-cap cryptocurrency projects.Investment amounts will range between $10-50 million per project, offering both...

Bitcoin ETFs break 5-week outflow streak, see $744M influx in one week

US spot Bitcoin ETFs recorded $744.35 million in net inflows for the week ending March 21, breaking a five-week outflow streak.BlackRock's IBIT led contributions...

DefiTax.us Launches to Simplify Crypto Tax Reporting Amid U.S. Adoption

DefiTax.us launches new tax reporting platform specifically designed for DeFi users amid increased government focus on cryptocurrency regulation.The platform offers automated transaction tracking, accurate...

Trump Shifts Tariff Strategy, Bitcoin Bounces Back Above $86,700

Bitcoin rebounded 3.3% to over $86,700 following reports that the Trump administration plans to implement more targeted tariffs rather than broad sector-specific duties.Trump's narrowed...

Trump-Backed WLFI Buys $3M in Mantle Tokens Following Network Upgrade

Trump-backed World Liberty Financial has purchased 3.54 million MNT tokens for approximately $3 million, expanding its digital asset portfolio to over $340 million.Mantle Network...
- Advertisement -

Must Read

What Is Bcrypt Password Hashing Function?

KEY TAKEAWAYSBcrypt is a password hashing function that transforms plain passwords into unique alphanumeric sequences.It is a one-way process, ensuring that passwords cannot be...

Read Next
Recommended to you