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Why the SEC Wants to End Coinbase and Binance and Let Wall Street Take Over Crypto

Press Releases Crypto News BeInCrypto Why the SEC Wants to End Coinbase and Binance and Let Wall Street Take Over Crypto

The crypto market is again under the spotlight. This time it is due to the US Securities and Exchange Commission (SEC) lawsuits against leading crypto exchanges Coinbase and Binance and increasing scrutiny. This has led to questions, debates, and theories about the SEC’s motives.

One such theory suggests that the SEC is trying to undermine these crypto giants. The goal is to pave the way for Wall Street to assert dominance over the cryptocurrency market.

Wall Street Giants Enter the Crypto Market

In the current digital era, some of the finance industry’s most recognized names, such as Standard Chartered, Nomura, and Charles Schwab, are building cryptocurrency trading platforms.

Gautam Chhugani, Senior Analyst at Bernstein, believes fund managers will be more inclined towards their trusted brands. This contrasts with trusting opaque crypto exchanges like Binance and Coinbase that currently rule the industry.

“The large, pedigreed, traditional institutional investors definitely prefer dealing with counterparties who they know have been in existence for years and have been regulated in the traditional sense,” said Chhugani.

The push from Wall Street comes amid a tumultuous period for the cryptocurrency market. Several crypto exchanges and lending platforms, including FTX, Celsius, and Voyager, collapsed last year, highlighting the inherent risks of these largely unregulated businesses.

Against this backdrop, traditional financial institutions hope that their brand reputation and industry expertise, untouched by the recent wave of crypto scandals, will lure fund managers to their new platforms.

“Lots of institutional players are testing different bits of activity to test the waters, build a bit of experience in the market but also . . . making sure they have an

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Author: Bary Rahma

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