SEC sues Coinbase & Binance as regulating crypto industry gets aggressive 😳; Affirm gives another masterclass in partnerships as it strengthens ties w Amazon 👏; Adyen keeps dominating in payments 💸
FinTech is Eating the World, 7 June
Hey Everyone,
Happy Thursday! Today’s issue is really thrilling as we’re looking at SEC that sued Coinbase and Binance (regulating crypto gets aggressive & what are the implications of it), Affirm that gave another masterclass in partnerships by strengthening ties with Amazon (why it’s a win-win for both companies + things to learn from Affirm), and Adyen that keeps dominating in payments (undervalued FinTech giant you cannot ignore). Let’s jump straight into the hot stuff 🌶
The SEC sues Coinbase and Binance as regulating the crypto industry gets aggressive 😳
The news 🗞 The Securities and Exchange Commission (SEC) has taken an aggressive regulatory stance in the crypto industry by filing lawsuits against crypto giants Coinbase COIN 0.00%↑ and Binance.
More on this 👉 Recently, the SEC brought 13 charges against Binance, accusing them of operating unregistered exchanges, violating securities regulations, and mishandling customer funds.
These are pretty serious accusations.…
ICYMI: SEC sues Binance and CEO Changpeng Zhao 🤯
Following that, the SEC sued Coinbase for not registering its crypto trading platform and violating securities laws.
What does this mean? 🤔 With a lack of a clear regulatory framework in the US, the SEC is adopting a stronger enforcement approach to crack down on non-compliance.
By targeting two prominent crypto firms within such a short timeframe, the SEC aims to demonstrate its willingness to legally challenge companies that it believes are not adhering to regulations, irrespective of their size and impact.
Members of the crypto industry have rightly criticized the SEC for its heavy-handed approach and highlighted the regulatory gaps in the US.
✈️ THE TAKEAWAY
What’s next? 👀 The SEC's actions yet again convey its belief that cryptocurrencies should be treated as securities, and it is thus prepared to take legal action against firms that fail to do so. This means that crypto companies relying on the "ask forgiveness, not permission" approach may face significant repercussions (Coinbase and Binance won’t be the last ones). Zooming out, these lawsuits against prominent crypto companies could further erode consumer confidence in cryptocurrencies and distance them from mainstream finance. On top of that, financial incumbents like Goldman Sachs GS 0.00%↑ and JPMorgan JPM 0.00%↑, which have invested in crypto operations as well as have both indirect and direct exposure, may consider reevaluating their positions as cryptocurrencies increasingly operate on the fringes of financial services.