Thoughts on SEC suit against Binance and Coinbase? Especially Binance? The claims against Binance looks very damning.

Cryptosg can give some counters

Here is why SEC is run by either a bunch of clowns (obviously they should not be; it is an insult actually) or SEC is meant to serve Wall Street. I believe it will be the latter. SEC is clearly clearing the deck for Big Boys to take over profitable crypto exchanges and you can clearly see this all over the news in 2022.

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CoinBase is probably the heaviest regulated US exchange and has been approved to operate staking and custodian services, primarily for institutional clients, and has been retail friendly. Big Boys are very very jealous of this and want to take the whole profitable pie. SEC cannot destroy Binance as retail clienteles are very likely to adopt OpSecs to trade crypto assets over VPNs. However, SEC has the ability to starve Binance out of the US markets for institutional clients where it will likely reestablish itself back in Hong Kong or the Middle East.

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Here is what CoinBase clarified last week:

• Number of times COIN mentioned STAKING in public S1 reports: 57
• Times COIN executives met with SEC in 2022 asking for guidance: 30
• Percentage of assets rejected by COIN to list as they do not pass legal standards: 90%
• Year of test that SEC uses to determine if TOKENS are securities: 1946
• Countries currently establishing comprehensive rules for crypto: 33
• Comprehensive rules SEC has established for crypto in USA: 0
• Tech Jobs at Risk of being driven offshore: 1,000,000++

Believe me, SEC has a high likelihood to attack ETH next because they have not clarified if ETH is a security or not under the Howey Test (1946). This is insanity according to almost all crypto insiders.

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This is not as BAD as the FTX collapse. It is clearly meant to drive retail out of the markets for institutional adoption. If there is one way to survive this insanity, a smart investor has to establish patience, small position-sized DCA policies and buy many of the COIN listed altcoins. It is currently insane to see prices of ultra-high-quality assets to be trading this cheaply. However, crypto is an extremely high volatile asset class right now so rational position sizing will keep your capital from being blown up. Ensure that you have sufficient investable capital to take advantage of situations when the broader crypto market witness massive blood on the streets. This is the time when massive wealth transfers will take place from the poor to the ultra-rich as we have already witnessed this on BTC using on-chain data shown by Glassnode. Those who missed this boat will probably be stunned in the near future.

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Once institutional players take over the crypto game from SEC, crypto assets will never be traded this volatile anymore. This crypto winter should be the last bear market for anyone who has not started to buy into numerous high-quality assets that are equivalent to the FAANG and Tesla that we see today. A lot of folks still do not see that everyone in the near future will be able to hold crypto asset classes directly in their bank accounts. This is what huge financial institutional players are building now and very few retail investors actually know this.

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Meanwhile, enjoy the volatility and stay safe!