Last Monday, the US Securities and Exchange Commission (SEC) with much furore Binance sued. The crypto exchange would among other things offering various cryptocurrencies as unregistered securities to customers. The policymaker also has a lot of criticism about how reliable Binance would be exactly. ARK Invest CEO Cathie Wood sees it on the bright side, as the situation would be favorable for Coinbase.
Binance and Coinbase in big trouble
The SEC, according to the indictment, believes that Binance is not just selling unregistered securities. In total, the SEC has as many as
Binance would also have committed fraud by wash trading and have manipulated the market by trading against traders themselves. To make matters worse, Binance has reportedly been using customer funds for its own purposes.
A day after Binance, the SEC also sued Coinbase. This competitor would also sell unregistered securities, although only 13 tokens are involved. In the case with Binance, the policy maker talks about 61 coins. Coinbase would also not be guilty of market manipulation. It also appears that the SEC has no issues with how Coinbase handles customer money.
In addition, the SEC also accuses both trading platforms of offering crypto staking, which it has made a problem of several other platforms.
“Binance lawsuit good for Coinbase, bitcoin”
Cathie Wood, CEO of the investment fund ARK Invest, thinks the situation will be favorable for Coinbase. She was a guest Bloomberg for an interview. Binance is Coinbase’s biggest competitor, it is the largest crypto exchange in the world.
“Binance is being investigated (among other things) for (fraud), which reduces competition for Coinbase. In the long run, that’s good for Coinbase,” Wood said. ARK Invest is one of the largest shareholders in Coinbase, which is now listed on the stock exchange (ticker: COIN). The SEC has not accused Coinbase of fraud, the top woman emphasizes.
She also thinks that the charges will be favorable for bitcoin (BTC). In theory, the largest cryptocurrency is still an antidote to problems in the existing financial system. The SEC’s policy attests that Binance and Coinbase are, in a sense, also covered by the existing system.