2023-06-06

SEC vs Binance: Should We Be Afraid?

June 06, 2023

Howdy DailyCoiners,Thought for the day? I think this one is super important on uncertain days like today.“Time in the market beats timing the market.”(Ken Fisher, founder of Fisher Investments)

Right, snap back to reality; let’s go!

⚔️ Battle of Binance
🛡️ Crypto Against Dystopia
🧾 Regulating Crypto Taxes

⚔️ Binance Brawl: SEC Lawsuit Sparks Market Frenzy

The bull and bear are locked in a battle as Binance faces an onslaught from the U.S. Securities and Exchange Commission (SEC).

The SEC accuses Binance and its CEO, Changpeng Zhao, of orchestrating an "extensive web of deception" to mask its U.S. activities and violating securities laws.

As a result, Binance has taken up its lance, vowing to "defend our platform vigorously," stating all user assets are safe and accusing the SEC of wielding "blunt weapons of enforcement and litigation."

This legal skirmish follows the recent blow from the Commodities Futures Trading Commission (CFTC), which accused Binance of breaching U.S. derivatives laws.

The market is a silent spectator in this duel. 🔕

Crypto prices took a nosedive after the SEC's lawsuit announcement, but some investors saw an opportunity.

On-chain data revealed significant withdrawals from stablecoin issuer Circle to crypto exchanges, indicating prominent players diving back into the choppy waters. 🌊

Whether they are navigating a sinking ship or preparing to ride a wave remains to be seen!

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Cardano's Hoskinson: Uniting Crypto Against "Chokepoint 2.0"

A dystopian world that makes George Orwell's '1984' seem like a vacation - that's where Cardano founder Charles Hoskinson believes we could be heading.

His warning follows the Securities and Exchange Commission (SEC) lawsuit against Binance. However, Hoskinson isn't calling for retreat.

A rally cry!! 🗣️

Hoskinson likened the SEC's lawsuit to "Operation Choke Point 2.0," referring to a letter by Cooper & Kirk to Congress.

The original Operation Choke Point was a campaign where banks were used as weapons against industries that had fallen from grace.

"Choke Point 2.0" alleges a similar plot, this time targeting crypto businesses, attempting to drive them out of the financial system.

The Cardano founder paints a grim picture, envisioning an "agenda-based central bank digital currency (CBDC) partnered with a handful of massive banks and end-to-end control over every aspect of your financial life."

This 'Big Brother' future would directly contradict the principles of cryptocurrencies: self-sovereign identity and economic freedom. 🆓

Hoskinson calls upon the entire crypto industry to resist this potential dystopia and advocate for "a common sense set of rules and guidelines."

The future of crypto, Hoskinson warns, hinges on a unified stand against this creeping authoritarianism.

Avengers...Assemble!

🧾 Congressional Cry: Crypto Closes the 'Tax Gap'

Are cryptocurrencies to blame for some of the United States' tax gap? U.S. Representatives Brad Sherman and Stephen Lynch certainly seem to think so.

The congressmen recently penned a letter to Treasury Secretary Janet Yellen and IRS Commissioner Daniel Werfel, calling for the imposition of tax regulations on the crypto industry.

Claiming that the crypto industry has been a "major source of tax evasion," Sherman and Lynch drew attention to a September 2020 audit report.

But the banking industry is squeaky clean…sure!! 😡

While the Biden administration pushed for a 30% Digital Asset Mining Energy (DAME) tax on cryptocurrency miners in May, this proposal didn't make it to legislation.

This hasn't pacified crypto proponents, with CoinMetrics co-founder Nic Carter predicting a future attempt to impose the tax. 📅

Amid such concerns, the representatives' call for the timely release of proposed regulations is an effort to "close the tax gap and bring the cryptocurrency industry into full tax compliance."

While regulation is a step forward, a fair bit of mud-slinging is going on!