Ethereum

Future

Gary

<p><strong>Recently, the crypto platform Binance and the U.S. Department of Justice (DOJ) have reached a settlement, leading to the abandonment of investigations against the company. Interestingly, the Securities and Exchange Commission (SEC) did not join the agreement. According to some analysts, this stance is anything but innocent.</strong></p>
<h2 id="h-absence-of-the-sec-in-the-binance-doj-agreement">Absence of the SEC in the Binance-DOJ Agreement</h2>
<p>The absence of the SEC from <a href="https://www.cointribune.com/binance-vs-doj-une-saga-judiciaire-en-quatre-actes/" target="_blank" rel="noopener noreferrer nofollow">the recent $4.3 billion settlement with Binance</a> appears to be a strategic decision. At least, that’s the perspective of some analysts who believe that the financial regulator’s position is part of a very specific logic.</p>
<div class="my-4">
 <div class="ads " data-page-type="" data-location="1">
 </div>
</div>
<p>They argue that it is <a href="https://www.dlnews.com/articles/regulation/sec-absence-from-binance-settlement-a-strategic-win/" target="_blank" rel="noopener noreferrer nofollow">a policy</a> that allows the regulatory body to maintain a strong coercive action against the crypto exchange Binance at a later time. By not participating in the agreement, the SEC has given itself the opportunity to establish a legal precedent on the classification of cryptocurrencies as securities.</p>
<p>This is a consistent position with respect to the regulatory stance taken in recent months by the SEC Chairman, Gary Gensler. A strategy aimed at asserting normative domination over the crypto industry.</p>
<p>Thus, for the SEC, it seems more important to ensure regulatory jurisdiction over cryptocurrencies than to conclude individual deals with crypto exchanges like Binance. This is why, despite this agreement, the U.S. financial regulator continues to attack them, with the most recent being against Kraken.</p>
<p>Ultimately, by avoiding entanglement in the settlement with Binance, the SEC maintains its aggressive regulatory policy. This is done in anticipation of a more significant judicial victory that could establish legal precedents supporting its ambition to regulate the entire crypto market.</p>
<figure class="wp-block-embed aligncenter is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <div class="entry-content-asset">
   <div class="social-embed-container">
    <blockquote class="twitter-tweet" data-width="500" data-dnt="true">
     <p lang="en" dir="ltr">Legal experts say the SEC has made a canny strategic move in staying out of the <a href="https://twitter.com/hashtag/Binance?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Binance</a> settlement. <br>It might help Gary Gensler win a bigger prize — legal wins that support his claim to regulate most of crypto.<a href="https://t.co/e5lnA6jnUT" rel="noopener noreferrer nofollow">https://t.co/e5lnA6jnUT</a></p>— Joanna Wright (@Joanna_Focus) <a href="https://twitter.com/Joanna_Focus/status/1729445844623991291?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">November 28, 2023</a>
    </blockquote>
    <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
   </div>
  </div>
 </div>
 <figcaption class="wp-element-caption"><em>The strategic absence of the SEC from the Binance-DOJ agreement</em>
 </figcaption>
</figure>
<div class="affiliate-button"><a class="affiliate-button__link" href="https://bitvavo.com/invite?a=2831A22E17" target="_blank" rel="noopener noreferrer nofollow">20€ de bonus pour votre inscription sur Bitvavo</a> <a class="affiliate-button__disclaimer" href="https://www.cointribune.com/en/sponsored-content/" target="_blank" rel="noopener noreferrer nofollow">Ce lien utilise un programme d’affiliation</a>
</div>
<h2 id="h-the-sec-engaged-in-a-normative-territorial-war-with-the-cftc">The SEC Engaged in a Normative Territorial War with the CFTC</h2>
<p>According to analysts, the SEC’s absence from the Binance-DOJ settlement conflict serves not only its long-term regulatory goals. It is also a means for it to win its jurisdictional territory war against the Commodity Future Trading Commission (CFTC).</p>
<p>In fact, Gary Gensler has consistently claimed the SEC’s regulatory authority over most digital assets. A position he does not intend to change, despite all the legislative initiatives targeting him in recent months.</p>
<p>This claim is distinctly different from that of the CFTC, which to date, only deems itself competent with respect to certain specific cryptocurrencies. This includes Ether, the native crypto of the Ethereum platform, for example.</p>
<p>Ultimately, the strategic absence of the SEC in the DOJ’s settlement with Binance positions the agency for a more impactful judicial victory. This is done by solidifying its authority in the regulation of the crypto industry.</p>
<div class="my-4">
 <div class="ads " data-page-type="" data-location="2">
 </div>
</div>
<p>It seems that with this strategy, the financial regulator has cleverly prepared to win its legal battle against Binance. It has managed to turn an initially difficult lawsuit into a more definite enforcement effort for the SEC. A potential period of sustained regulatory austerity looms for the entire crypto industry.</p>

Binance-DOJ Agreement: SEC in Retreat, Why?

Table of Contents

Cointribune EN

Other articles published on Nov 29, 2023

Exploring the Ispolink Ecosystem

Cristiano Ronaldo faces lawsuit over Binance promotion and unregistered securities

Trapped LUNC Price Shows Signs of Life; Could a 30% Surge Be Ahead?

Palm Foundation Offers Grants to Lagos & Momentum Artist Residency Program

Analyst points to XRP’s potential ‘huge move’

Stacks (STX) Price Prediction 2025, 2030, 2040 and 2050

Join our free newsletter for daily crypto updates!