US Government Declares War on Cryptocurrency

The US Securities and Exchange Commission (SEC) has filed lawsuits against major players in the cryptocurrency industry, including Binance and Coinbase, accusing them of violating securities laws. This move by the SEC sends a clear message to the entire crypto ecosystem: comply or face consequences. The government’s interest in regulating the crypto market has been building since the 2017 spike in bitcoin’s price and the desire to create futures contracts tied to the asset class. However, the lack of clear guidance from the government has resulted in frustration from both sides of the argument. Adding fuel to the fire was the arrival of SEC Chair Gary Gensler in 2021, who quickly dubbed crypto the Wild West and called on Congress to give him more power to regulate the market. With hundreds of billions of dollars and thousands of jobs at stake, the crypto industry and regulators must find a way to figure it out for everyone’s sake.