SEC plans to sue over Coinbase. Followed by their announcement on launching the ‘Lend’ product.
SEC faces a challenge to sue over Uniswap. But the agency made a strong move against Ripple and Coinbase
The evolving crypto space is set to enter the mainstream soon! But it has to cross several regulatory and other barriers. When the popularity and revenue increase, always there comes a question, How? The same way SEC, US government oversight agency. Which is investigating Ripple, Uniswap, and recently Coinbase asking for clarification on their products.
However, SEC screws Ripple and Coinbase, yet asks Uniswap to have a general discussion. It is to be noticed that SEC has not imposed or restricted the exchange yet, but just want to get educated if Uniswap exchange does not indulge in money laundering. Let’s check how SEC handled Ripple, Coinbase and Uniswap with a difference, and why?
SEC vs Ripple
Well, the investigation on popular exchange started in December. SEC sued Ripple in December 2020. SEC fought very hard against Ripple. The agency argued XRP is a security and that the platform violated US regulations by not registering its native token with SEC before launching it. However, SEC filed a lawsuit against Ripple and the case is still going on.
SEC vs Coinbase
In another case, Coinbase was set to introduce a new digital asset lending product. The product will allow users to earn interest in their crypto holdings. With the product announcement, the platform also opened a waitlist but didn’t disclose a launch date.
Woefully the SEC has threatened to sue Coinbase which was notified by the CEO Brain Armstrong himself. . The agency argued showing a concern that such products should comply with existing US securities laws. Coinbase may pay hefty charges by SEC if they plan to launch the lending product in the future.
SEC vs Uniswap
On September 3, 2021, SEC investigated the Uniswap exchange. SEC wanted to know how traders use Uniswap and how it is marketed. The investigation is under civil law, not criminal law. Therefore it may or may not lead to charges.
Interestingly, the agency hasn’t got many questions for this DeFi platform. The DEX offered more stimulus to its investors via airdrop than the US government provided to its citizens. And that too without taxes, debt, or cutting down the fees for checks. Moreover, Uniswap being decentralized, all the transactions reside on the blockchain, leaving no space for any speculation.
Collectively, SEC has already tightened its grip against centralized exchange Ripple & Coinbase. Seems it is difficult for SEC to sue Uniswap, as the order book of the exchange is pretty transparent. And hence it could be giving a very tough time for the SEC to frame under serious charges.