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    The SEC Comes For Crypto!



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    This week, the US Securities and Exchange Commission (SEC), filed lawsuits against Binance and Coinbase, two of the world’s biggest crypto exchanges, on which investors buy and trade a large offering of cryptocurrencies. The SEC’s main allegation against Coinbase is that it’s running an unregistered securities exchange — like if the Nasdaq independently operated without any regulatory oversight. Binance faces the same charge, as well as additional accusations that it appropriated billions of dollars in customers’ funds for its CEO’s trading firm, misled its customers, lied to regulators, and more. Binance is accused of moving money from the US business to pay for a Yacht for the exchange founder Changpeng Zhao.

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    View 40 Comments

    40 Comments

    2. Liam Joe on

      I have a grand sitting in BinanceUS for almost 3 years they will not let me pull my money out. If anyone has a clue please comment below.

    3. Bill y on

      Hey Patrick, why don't you do a video on how using cards, phones etc. instead of cash is one of the major causes of inflation? Every transaction carries with it a fee to banks and this amounts to nearly everyone paying extra thus contributing to inflation but, because governments like to track everyone's expenditure they encourage payments without cash. A video showing the actual effect of these charges would be quite interesting.

    4. Adrian A on

      They intentionally pushed inflation over the hill even long after the Pandemic…. now step by step they go after Crypto , because the world reserve currency USD was at risk from this sector…
      Just because they let months pass before they escalate even more with the step by step plan to protect the world reserve currency and so their interest … doesnt mean it wasn't an elaborate plan… Who are they? its easy to spot them, those few that get richer not poorer like the rest of us. The biggest banks, the political Establishment and all their tools at the bureaus and secret services.
      Can I prove it ? No… but it walks like a duck, it quacks like a duck … just because it takes a few months in between "quacking" , shouldn't fool anyone.

    6. zaco 2121 on

      I remember that there was an attempt to consider "cryptocurrencies" as commodities legally. That would mean that "cryptocurrencies" should be under the authority of the CFTC. One reason for classifying "cryptocurrencies" as commodities was because Bitcoin and other "cryptocurrencies" were most of the time NOT used as currencies but as commodities because everyone pretty much speculates on their value. Thing is Bitcoin and pretty much all the other "cryptocurrencies" were meant to act as….currencies. They were initially meant to replace the $ and eventually other national currencies. Currencies are securities by definition and that pretty much puts "cryptocurrencies" under the authority of the SEC. The people that started crypto created this legal quagmire. They didn't know what they were doing. If that's not enough the situation with FTX and a few other "cryptocurrencies" have pretty much invited regulatory intervention.

    7. Psychic Kumquat on

      The number of cryptpbros on here trying to cope is hilarious. Guys, the gig is up, the world is waking up to how dumb your funny money is! This is just your dumb decisions having dumb consequences.

    8. Ohyeah What on

      Stupid Bankman Fraud already got his and the Democrat party got theirs. Time to shut the rest down. You don't pay, you don't get to play.

    9. Barát Gábor on

      I'd be curious about what legal bases do other platform have, for example Revolut, for letting people trade crypto. I'd also be curious what bases Revolut has for stripping their users of effectively all protections with respect to their stock portfolio. Recently they announced a change, they'll be merging all, previously separate user trading accounts to a single trading account, so the insurance will only cover that single account with their trading partner, which means that users probably have effectively 0 insurance on their stock portfolio.

    10. K M on

      Fully agreed to regulate crypto like gambling but then the industry and the crypto bros they will say that they are the future of finance and therefore consumers will think they are buying financial products and then regulators… oh wait!

    12. KG on

      I wish the SEC would take your advice. These things shouldn’t be called securities in many cases. Yes, the assets they’re pointing at in the Coinbase case pass the Howie test. The SEC should just be plain and start labeling projects, which would prevent exchanges from offering them. It’s a joke how lazy they’ve been. A lot of the trouble we’ve seen could have been prevented if they’d just done their job. Even as late as 2017, 2018. What’s their excuse? We should sue them for negligence.

    13. flurbius on

      well I suppose in this sort of case they are usually guilty so its just a formality to consider them innocent at any stage in a SEC prosecution

    15. carbon1479 on

      While this is a pretty good neutral overview I disagree on one point – ie. crypto is not as mundane as collectables. It's not only Visa, Mastercard, PayPal, Disney, Wallmart, Amazon, and big hedge funds getting involved, Chainlink even has contracts with SWIFT. If the SEC would not have allowed Coinbase to register properly as an exchange, and even further criticizing that there was educational material on the site, that's very much the stance you take against something that's unambiguously a criminal organization – ie. the more 'by the book' it tries the play the more insidious it is with its veneer of 'borrowed' legitimacy. I think things are likely to get even stranger from here, primarily because I don't think I've ever seen anything quite like this situation (closest analogy I can think of is Dutch tulip mania in terms of financial interest but instead if the tulips created tech ecosystems that the companies could use). The signals aren't just mixed, they're at the extreme ends in both directions – from positions of significant power in both.

    16. Smotch on

      Besides your personal bias why shouldn't crypto have sane regulations and get an opportunity succeed in the free marketplace of ideas and technology?

    17. Janos Fejos on

      The crackdown on crypto will solve one of the problems. It brings down volatility and people will use it as an alternative to bank transfers avoiding high transaction fees. So there'll be a good use of it. Great video Patrick as always.

    18. TheControlBlue on

      I feel like I have just listened to a Dinosaur trying to explain to me the Internet and why it won't matter.

      Sure thing, Boyle. You seem to not have paid attention to the 2000s, because the Internet was also without killer apps until the Smartphone years later. Also, Poke"mans" are very popular, but I dont expect the boring version of a boomer to understand that.

      Seems like you are setting yourself up for Krugman moment

    19. Don Greek on

      Unregulated markets are a heaven for scams and we have seen that with bitcoin and others. Why anyone thought otherwise is beyond me. Especially since those who lose their shirts then want the government to save them, instead of just going and get jobs to cover their losses.

    30. Liliana L Wiggins on

      Although< I have interests in global economics I don't watch the news anymore… I have enough FUD lol. Thanks for this news and offering your insight on how to navigate during unfortunate times/events like this. You're right about keeping level headed when investing so that's why I think it's important to limit the amount of FUD we consume. I don't watch the media but the news that you present has enough to know issues going on without riding the emotional rollercoaster if I were to watch the news everyday. Now I buy and just trade long term more than ever, I have made over 23` btc from day trading with >Boston Weber Signal in few weeks, this is one of the best medium to backup your assets incase it goes bearish..

    31. Frank Link on

      This a great video, I learn a lot watching your videos and it has been helpful to me. building a steady income is quite difficult for newbies. Thanks to Ava Rowena for improving my portfolio,

      keep up with good videos.

    33. Mary E on

      Crypto reminds me of The Emperor's New Clothes. The value of crypto is created by those willing to buy. It has no intrinsic value. Giving crypto the status of a stock is laughable.

    34. Peter Lynch Channel on

      Patrick makes a great point about a price support for crypto being provided by people being unable to pull their money out of exchanges. Very sad. Stay away and don't get burned.

    36. HavenCat on

      it's very naive to think Crypto will disappear as you say. Also very naive for Coinbase to try to stay legal, very well done CZ! I hope this guy manages to defeat the evil regulators!

    39. Buddhism 101 on

      They need license to be fraud… If we pay attention to everything…. Then connect all the dots… we will see there are 2 “ Control and be controlled “ classes. 😂😂😂. Be water and out of circle. Thanks Mr B. !

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