According to new reports, former SEC executive John Reed Stark says US regulators will bring more lawsuits against crypto companies. Which stock market will be next?
Former SEC executive confirms: Case more crypto lawsuits to come
Recently, fears have increased in the market due to lawsuits filed by US regulators against crypto companies and their executives. This came at a time when the crypto market was trying to break out of its lows in 2022. Worse, former SEC executive John Reed Stark warns that sanctions could continue.
As we quoted as Kriptokoin.com, US regulators sued a number of crypto companies in March. Binance, Tron and its founders have been investigated for market manipulation.
In connection with the charges against Sun, we also charged 8 celebrities for illegally touting Sun’s crypto asset securities.
— U.S. Securities and Exchange Commission (@SECGov) March 22, 2023
US regulators poised to make more
John Reed Stark, former head of the US Internet Enforcement Administration, told the Financial Times that the crypto market will face more regulatory pressure in the future. Stark points out that the SEC will not remain silent at a time when investors are at risk.
He also highlighted that news of new lawsuits targeting the crypto industry is increasing day by day. However, he added that some rules are needed to protect investors.
Meanwhile, popular US-based exchange Coinbase is facing a “Wells Notice” from the SEC. SEC Chairman Gary Gensler recently suggested that some tokens offered by exchanges are securities. After that, it is stated that Coinbase is on the SEC’s target list. A “Wells Notice” is a notice the SEC sends before filing a lawsuit.
Which cryptocurrency exchange will be next?
Coinbase CEO Brian Armstrong had teamed up with the SEC to seek clear rules for crypto firms in the country. The exchange asked regulators to set clear policies and then try to implement them.
SEC Chairman Gary Gensler has already initiated serious enforcement actions against some top crypto firms. This included Genesis and exchanges like Kraken and Gemini. He also sued Justin Sun, the founder of Tron, for violating securities rules.
Binance, the world’s largest exchange, recently faced law enforcement by the CFTC. The complaint accuses Binance CEO Changpeng Zhao (CZ) of the Commodity Exchange Act (CEA) and CFTC regulations.
MiCA is spoken in Europe
Aside from the increasing pressure from the US on the cryptocurrency market, the MiCA bill to be implemented in EU countries was officially approved last week. MiCA prioritizes issues like crypto companies and investor security. However, it should be noted that MiCA is still lacking in DeFi, NFT, crypto lending and staking sectors. MiCA, which will take effect in July, will be fully effective as late as 2025.
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