The SEC Comes for Crypto - Bloomberg

“A decent rule of thumb,” I wrote in March, “is that all cryptocurrency exchanges are doing crimes, and if you’re lucky your exchange is doing only process crimes.” Like: These things are not especially correlated because, again, every crypto exchange is violating US securities law. “Oooh I shouldn’t trust my money to those guys because they are violating US law”: Sure, yes, a reasonable position that would save you from a lot of crypto disasters, but also one that would prevent you from trading crypto entirely. Your choice! I am overstating all of this but not by much, man, not by much. Yesterday the SEC sued Binance, the biggest global crypto exchange, and its founder Changpeng Zhao, for operating an illegal securities exchange. Today the SEC sued Coinbase Inc., the biggest US crypto exchange, for operating an illegal securities exchange. There are basically two ways for a crypto exchange to get in trouble with the SEC. The good way is that you get in trouble for running an illegal s

“A decent rule of thumb,” I wrote in March, “is that all cryptocurrency exchanges are doing crimes, and if you’re lucky your exchange is doing only process crimes.” Like: These things are not especially correlated because, again, every crypto exchange is violating US securities law. “Oooh I shouldn’t trust my money to those guys because they are violating US law”: Sure, yes, a reasonable position that would save you from a lot of crypto disasters, but also one that would prevent you from trading crypto entirely. Your choice! I am overstating all of this but not by much, man, not by much. Yeste