Coinbase, Kraken, and Binance Charged by SEC

Binance was sued by the SEC in June for operating an unregistered securities exchange, as were Coinbase, also in June, and Kraken, in November.

The action against Coinbase was particularly noteworthy, as the company has frequently touted its openness to work with U.S. regulators and comply with rules. Regardless of Coinbase’s intentions, the reality is the exchange has listed assets that the SEC deems securities.

At the heart of the matter is a disagreement over what counts as a security and who has the authority to decide. Coinbase CEO Brian Armstrong said in April that he would consider moving the exchange if Congress and regulators didn’t provide greater clarity on crypto regulations in the next few years. Even federal officials, like Commodity Futures Trading Commission Chair Rostin Behnam, have said the U.S. regulatory framework needs clarifying.

The industry in 2024 will continue to seek greater clarity on which crypto assets are securities and which are commodities. In the meantime, the SEC will likely continue to operate under Chair Gary Gensler’s belief that “everything other than bitcoin,” falls under its purview.