Here’s why the SEC spares Proof-of-Work cryptos!

The successive attacks of the SEC against Binance and Coinbase have surprised the entire cryptosphere and raise many questions. What will be the next target for the SEC after these two big exchanges and which cryptos are next on the list? Analysts try to answer these questions and point out the existence of a common point between the digital assets targeted so far.

Proof-of-Work cryptos spared for the time being by the SEC

The US Financial Markets Authority has been on a witch hunt for a few days. The Securities and Exchange Commission (SEC), which has been attacking Coinbase lately, first attacked Binance and demanded the freezing of its assets.

The regulatory body criticizes these exchanges for not having registered certain digital assets and has also published the list of these. Steven Lubka believes he knows how the SEC selects the assets it targets. “I think PoW coins are largely avoided because there is no central transmitter,” he said. entrusted to the media Decrypt.

The managing director of Swan Bitcoin explains that PoW is an open system and has no central issuer, which differentiates it from digital assets that use the Proof-of-Stake or PoS system. Barry Silbert, founder and CEO of Digital Currency Group obviously made the same observation. In a tweet, he points out that there are “no Proof-of-Stake digital assets in any of the lawsuits.”

But be careful not to rejoice too quickly

For the time being, the policeman of the American financial markets has not yet explained why he only targets digital assets that use the Proof-of-Stake system. If for some analysts, the SEC selects digital assets based on their validation system, other experts believe that this is not the case.

Vineeth Bhuvanagiri believes “that the reasoning of the SEC could be more rooted in the popularity of the asset”. Brent XU, CEO of DeFi hub Umee says it’s impossible to explain the SEC’s choices. According to him, “the public knows too little of the reasoning and justification” of the SEC and therefore cannot explain “this apparent trend”.

After its lawsuits against Binance and Coinbase, the SEC is clearly determined to clean up and better regulate the crypto industry in the United States. The financial market regulator may give more details in the coming days on the choices of digital assets it targets.