The lawsuits lodged by the U.S. Securities and Exchange Commission (SEC) against Binance and Coinbase have resulted in escalating tension between crypto companies and financial regulators. Many names within the crypto ecosystem have expressed their reactions to the SEC’s attitude towards the crypto ecosystem, with a significant claim coming from Binance’s lawyers. According to Binance’s attorneys, SEC Chairman Gary Gensler made a proposal to take on an advisory role at Binance in 2019.
Developments during the week have caused the markets to stir again. Following its lawsuit against Binance and its CEO Changpeng Zhao at the start of the week, the SEC also sued Coinbase, alleging violations of securities law. The consecutive lawsuits led to backlash from several well-known figures in the crypto ecosystem. The regulators’ approach to crypto regulations and crypto companies has sparked a new debate among the public. On the other hand, while legal processes started on behalf of Coinbase and Binance, a new allegation also emerged from Binance’s lawyers. According to claims, Gensler had several meetings with the CEO of Binance before starting his role at the SEC.
In the wake of the lawsuit filed by the SEC, the lawyers of Binance, currently the largest cryptocurrency exchange in the crypto ecosystem in terms of transaction volumes, have made striking allegations. According to Binance’s lawyers, SEC Chairman Gary Gensler proposed taking on an advisory role at Binance in 2019. In a statement made by the lawyers, it was alleged that Gensler had several meetings with Binance executives and founder Changpeng Zhao before starting his role at the SEC.