The legal battle that the SEC recently launched against Coinbase and Binance is significantly harming the crypto industry. Some experts believe that it will aggravate the risks already particularly present in this sector. This, to the detriment of users who must now think about protecting their interests.
John Reed Stark calls for immediate exit from exchanges
While the crypto industry boat was already rocking enough, the SEC decided to add more. This, by continuing in quick succession, Binance and Coinbase, two of the most important exchanges on the market.
For John Reed Stark, a former SEC executive, this is a very serious warning to users. The alert is important enough for them to consider leaving these platforms to safeguard their assets. This is also the call made to them.
The ex-SEC aide explained the reasons for this urgent appeal. “No matter what the carnival barkers promise, it’s obvious that cryptocurrency exchanges are high-risk, perilous, and inherently insecure. Exchanges are the subject of a regulatory and repressive siege in the United States that is only just beginning,” said John Reed Stark.
According to the latter, if things are like this, it is because crypto companies are not registered with the SEC. A situation that does not require them to respect any standards whatsoever. Which ultimately exposes users to all the failings inherent in the crypto industry.
Consequence: platform customers are not protected. They could therefore be subject to negative behavior by industry players such as market manipulation or insider trading. A risk reinforced by the non-existence of systemic devices, protecting users from cybersecurity threats, among others.
It seems that many users did not wait for John Reed Stark’s call to seek shelter. According to data from blockchain analytics firm The Block Research, exchanges are posting a negative performance in May. The trading volume of these platforms fell by 23.2% over the period to reach $307.4 billion. This is their lowest level since November 2020.
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