- The SEC’s litigation against Binance has drawn a sharp response from the crypto community. The founder of Cardano, Charles Hoskinson, has aired a strong opinion regarding this issue.
The Security and Exchange Commission (SEC) recently complained about the leading crypto exchange Binance. Most people are viewing it as a part of the grand scheme that involves the implementation of the Central Bank Digital Currency (CBDC) in the United States. The charges have spread major concerns among the crypto communities.
For the uninitiated, the CBCD will be a government-owned cryptocurrency. The reserve bank and a handful of other banks in the country would maintain it. As per the crypto experts, this asset compromises with decentralization and allows the regulatory to intercept the information. It is the opposite of what blockchain-based crypto achieves.
Hoskinson calls SEC out
Charles Hoskinson, the founder of Cardano has raised some serious questions about the SEC complaint. He says that the SEC is trying to wipe out the fundamental nature of cryptocurrency. According to him, they want to keep the governance in the hand of a “few” rather than sharing it equally with everyone. He says that the government’s denial of crypto or their attempt to tweak it shows that they don’t want to give total economic freedom to people.
However, Hoskinson expresses hope for the future of the crypto industry. He said this event allows the entire industry to come together, forgetting their differences. He also voiced his opinion about setting up rules and guidelines that will prevent the country from seeing the worst adaption of crypto. Assessing the industry’s future, he said that those involved in the blockchain domain will see a bright future ahead.
His comments echo the growing sentiment in the crypto community that sees the hostile regulatory bodies as challenges and opportunities. While everyone acknowledges that certain risks are involved in crypto, they totally outweigh the innovations and growth prospects. Many believe there are endless benefits of associating with cryptocurrency and the technology should be adapted as it is.
Binance’s Response to SEC
Meanwhile, Binance has responded to the complaint filed against it by SEC. The company expressed grief and disappointment over SEC’s decision in their released statement. They also sought emergency relief and emphasized that the company hasn’t violated any security laws.
Explaining their cooperation further, the statement says that Binance has always maintained good-faith terms with the government. Despite all that, the SEC acted at their own will while abandoning the talks. Binance vehemently opposes all the allegations made by the body and defends all its actions and practices.
Moreover, the company claims that SEC’s approach to regulating the crypto industry has been lop-sided. Binance expresses concerns over the regulatory’s high-handedness and indicting approach. It says that this course of action is very deteriorating the United States’ image of being a leader in innovation. It is not thoughtful and is against the investors’ interest as well. The company also suggests that SEC’s prompt legal actions indicate they’re lazy at their jobs. Instead of thinking of solutions that could benefit everyone, they drag everyone to the court.
In the statement further, they said that the Binance and Binance affiliate programs are totally secure. They said that SEC doesn’t have a strong base for their actions The company even claims that the body’s real intent is to shun their responsibilities rather than protect investors.
Concluding the dialog, Binance said that it remains firm on its ground while being open to any sort of cooperation. It says it’s resolute to deliver a trusted platform that imparts uncompromising security and the freedom to use the money.
Upshot
The tussle between SEC and crypto companies can continue for some time. However, the crypto community hopes the issues will be resolved with a profound understanding of blockchain.
