While the SEC’s Case Against Coinbase Has a Fatal Flaw, Binance US Will Require a Miracle To Escape the Regulator’s Clutches

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The SEC has mounted a two-pronged attack against the crypto sphere by bombarding Binance and Coinbase with high-profile lawsuits. While the apex American financial regulator has likely caught Binance with its proverbial pants down, its case against Coinbase stands on quite flimsy legs.

For the benefit of those who might yet be unaware, the SEC filed 13 charges against Binance on Monday, accusing the world's largest crypto exchange of subverting established rules to allow high-net-worth individuals in the US to access Binance's offshore services, comingling of customer and corporate assets and funds, wash trading via affiliated entities, lack of KYC, and outright embezzlement on the part of Binance's CEO, Changpeng Zhao (CZ). Additionally, the apex financial regulator in the US has now declared some of the most popular tokens as "unregistered securities," thereby attempting to bring the entire crypto sphere under its own jurisdiction.

Then, on Tuesday, the SEC filed a separate lawsuit against Coinbase, accusing the crypto exchange of operating an "unregistered national securities exchange, broker, and clearing agency."

The SEC filed a restraining order requesting that the judge freeze https://t.co/sqCToQ0vpT' assets

"The SEC respectfully submits that this relief is necessary on an expedited basis to ensure the safety of customer assets and prevent the dissipation of available assets" pic.twitter.com/fzBGTQjG3H

— Leo Schwartz (@leomschwartz) June 6, 2023

As an illustration of the SEC's confidence in the evidence that it has gathered against Binance, the regulator has just filed a restraining