Unchained The Chopping Block: Jake Chervinsky on How the SEC Has Lost Credibility - Ep. 503
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Jun 8, 2023 Jake Chervinsky, Chief Policy Officer at the Blockchain Association, shares his expertise on the SEC’s recent legal actions against Binance and Coinbase. He argues that the Binance lawsuit lacked surprises but reveals alarming allegations of wash trading. Chervinsky discusses the SEC's inconsistent enforcement, the potential targeting of Gemini, and the contrasting market reactions to these cases. He also speculates on how these developments might influence legislative action in Congress, suggesting a broader impact on the future of crypto regulation.
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SEC's Intent
- The SEC’s lawsuit against Binance contained few legal surprises, as their stance on tokens as securities was already known.
- However, the lawsuit reveals the SEC’s intent to ban, not regulate, the crypto industry through enforcement.
Binance.US Allegations
- Binance.US allegedly engaged in wash trading, though not excessively.
- CZ reportedly maintained significant control over Binance.US despite claims of separation, surprising no one familiar with his leadership style.
Binance.US Structure
- Structuring a U.S. entity separately from an offshore exchange is legally sound if done legitimately.
- However, Binance.US appears to be a sham, designed to exploit U.S. markets while evading regulations.