The US Securities and Exchange Commission bears down on all crypto exchanges in order to fully control the cryptocurrency market. Recently, the SEC threatened to sue the US cryptocurrency exchange Coinbase if they launch Coinbase Lend, a program allowing users to earn interest by lending digital assets.
Also, the SEC is already suing Ripple Labs. BlockFi was previously faced with this. Former federal prosecutor James Phelan believes that the SEC will very tightly control the entire cryptocurrency market.
Phelan worked for nine years in the US Attorney's Office for the District of Connecticut and has extensive experience in litigation involving government research, digital currencies, and securities.
According to him, the SEC will bear down on all crypto exchanges to fully control the situation. Brian Armstrong and Coinbase are already starting to blame the SEC for intimidation tactics, as their lending program has not yet been launched because of it.
Phelan believes that the Securities and Exchange Commission will extend its influence to other crypto exchanges in order for them to obey it. They use "intimidation tactics behind closed doors" and prevent companies from launching their own proprietary software.
The SEC wants to sue Coinbase because it believes their Coinbase Lend program is a security.
Following a lawsuit against Ripple Labs, Coinbase removed Ripple from its listing. Now, during the battles between Ripple Labs and the SEC, the company asks Coinbase to add Ripple back to its listing.
After these precedents, many analysts believe that the SEC will not be limited to the companies and will continue to sue crypto exchanges.
Ripple CEO Brad Garlinghouse said on Twitter that the cryptocurrency market was in danger and the SEC's continued warfare on crypto would be very long and persistent. Many people say we need to cooperate with the SEC, but all they end up doing is threatening or enforcing. The SEC harms the crypto market and investors with its intimidation method.
