The SEC’s legal action against Binance is still at the heart of crypto news. Binance executives have promised to fight to defend their platform. For its part, does the SEC, which opened the hostilities, really have the means to win this showdown? Carol Alexander doubts it. Here’s why.
SEC financially weak to fight legal battle
Last week, the SEC attacked Binance, one of the most important companies in the crypto industry. The regulator is taking the company to court for the accumulation of the funds it manages.
These lawsuits may not succeed according to Professor Carol Alexander. The crypto and financial industry expert believes that the SEC simply cannot afford its policy.
According to Alexander, the regulator does not currently have the financial robustness necessary to carry out legal proceedings. Because the two years of legal battle against Ripple have affected the coffers of the public company.
This is not the case with Binance. It is true that the company and its subsidiaries have recently suffered significant outflows of funds. According to the specialist, this does not affect the coffers of the company so far. It therefore has the financial depth necessary to defend itself in court.
“I’m not sure the SEC will succeed [sa procédure, Ndlr]. Binance has very deep pockets and I’m not sure about SEC funding. After all, it comes from traditional finance and investment companies,” said Carol Alexander.
The latter nevertheless recognized a certain legitimacy in the legal actions of the SEC. According to his opinion, some cryptos can indeed be classified as securities.
Hence the need to implement clear crypto regulations. This, she explains, is the most relevant way to guarantee the stability of the crypto market. This, by fighting against the unfair activities that take place in the industry.
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