Unfortunately its been happening for a while. I recall reading 1984 in High School. I thought it to be an absurd tale. 40 years later the absurd had slowly become reality.
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The email below was sent to me by Binanace U.S.
Dear James,
As you may be aware, Binance.US, alongside other companies in our industry, has become the target of aggressive tactics by the United States Securities and Exchange Commission (SEC). The SEC has brought unjustified civil claims against our business, from which we will continue to vigorously defend ourselves, our customers, our partners and industry.
Irrespective of the baseless claims, and in light of the Commissionâs increasingly aggressive tactics, our payment and banking partners have signaled their intent to pause USD fiat channels as early as June 13, 2023, meaning our ability to accept USD fiat deposits and process USD fiat withdrawals will be impacted. As part of our customer-first commitment, we are notifying users promptly so you can take necessary actions as we transition to a crypto-only exchange. To be clear, we maintain 1:1 reserves for all customer assets, so customer funds are always safe, secure, and available.
Please note the following changes that will impact the platform:
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ACH WITHDRAWALS: We encourage customers to withdraw their USD via bank transfer (ACH) by June 13, 2023. Due to elevated volumes and weekend bank closures, ACH withdrawals may take longer than usual to process (e.g. up to several days); we appreciate your patience.
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USD DEPOSITS: To ensure a timely USD withdrawal process, we are suspending USD deposits and recurring buy orders today and beginning the transition to a crypto-only exchange. Any deposits already initiated will be processed.
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USD TRADING PAIRS: Beginning next week, we will start delisting USD pairs (e.g., BTC-USD) on our platform, while continuing to support stablecoin pairs (e.g., BTC-USDT).
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USD BALANCES: Any USD balances remaining on the platform after June 15, 2023 may be converted to stablecoin that can be withdrawn on-chain.
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Cryptocurrency services remain fully operational, including: crypto trading, staking, deposits and withdrawals.
Until we secure more stable banking partners, Binance.US will remain a crypto-only exchangeâat least for a time. We will continue to provide you with updates via our status page.
Thank you for your continued support as we fight for a path forward for those who want a thriving digital asset marketplace in America.
The Binance.US Team
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Iâm starting to look at crypto-friendly banking solutions. I think, these 3rd-party services are becoming too much of a risk.
I would be curious to know if anyone has any experience with any crypto-friendly banking system. Many of them seem to offer crypto cards and FDIC insurance up to 250k.
Anyone using them?
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No, but I will do more research.
I just notice, some banks uses coinbase exchange.
Best Crypto Friendly Banks in 2023
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Yes, I saw that, too. But only a few. I think, better to avoid any that do.
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I guess my thinking is that any bank that touts themselves as a crypto solution will likely work fast and hard to find alternatives to keep their business going in the event like we are seeing now, with coinbase and binance.
Not only that, but being able to transfer crypto to my bank account and immediately convert to fiat where it is insured, without having to transfer anything or risk getting flagged for some reason, seems like a better move.
The fact that the bank would be handling all crypto/fiat seems like it might be better too, since there would be less risk of a 3rd-party holding up my funds for some reason.
This is just my initial thinking. I do not really know if these services are a good idea or not. I will research more.
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Robinhood and Coinbase attempt to comply with the SEC: what does the SEC really want?
Robinhood Joins Coinbase in Saying It Tried to âCome In and Registerâ Like SEC Wanted
With Coinbase (COIN) and Binance accused of running illegal exchanges by the U.S. Securities and Exchange Commission (SEC), the latest industry testimony in the U.S. House of Representatives this week revealed that companies had desperately sought the agencyâs help to properly register but were turned away.
SEC Chair Gary Gensler has a go-to crypto invitation to the firms that are operating without the agencyâs approval and oversight, which heâs repeated so often itâs become a messaging mantra: They just need to come in and register.
Robinhood Marketsâ chief compliance lawyer told lawmakers that the popular trading firm was trying to register as a special-purpose broker for digital assets. Dan Gallagher, a former SEC commissioner who has spent a career in securities and corporate law, couldnât get the agency to guide Robinhood into crypto compliance, though he said the staff seemed to want to help.
âWhen Chair Gensler at the SEC in 2021 said, âCome in and register,â we did,â Gallagher said in his testimony. âWe went through a 16-month process with the SEC staff trying to register a special purpose broker dealer. And then we were pretty summarily told in March that that process was over and we would not see any fruits of that effort.â
His story echoes longstanding complaints from Coinbase, whose top lawyer was also present at the House Agriculture Committee on Tuesday and is now facing an SEC lawsuit alleging his company offered unregistered securities and didnât get approval as an exchange.
âWhen Coinbase has attempted to do just that, to talk about how we could register as a broker-dealer or an [alternative trading system] or even as a [national securities exchange] after months and months of discussion, weâre simply dismissed with no response or any counter proposal or ideas coming back from the SEC,â said Paul Grewal, Coinbaseâs chief legal officer.
<Robinhood Joins Coinbase in Saying It Tried to 'Come In and Register' Like U.S. SEC Wanted
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Infuriating to read, honestly. I hope that Gensler and any others get exposed if any wrongdoing has occurred.
Thanks for sharing.
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There is no need for me to use Binance since I cannot convert my crypto into fiat and withdraw it
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Yes. And the same could happen with CoinBase.
My thought is, if a crypto-friendly bank that relies on one of these services for their exchange faced this problem, then they might react quickly to find other solutions for their customers in lieu of me having to jump around from service to service, depending on which one becomes Genslerâs next target.
I also wonder if such âbankingâ services would be able to function as a proxy/umbrella for me, similar to how props allow access to brokers that prohibit US traders, or how brokers allow access to exchanges that prohibit US traders etc⌠This could be critical in the coming days.
I do not know though, really, as I can only speculate at this point.
What I do know, is that, if the SEC continues to push on this, then we may be left with very few options. I am also looking at futures, as a possibility, but I know very little about it. I do not like the idea of depending solely on prop firms, either. I actually prefer to trade my own account, and just use props as a way to fund that account.
But if I need to use crypto to fund my personal account(s), then I need to ensure that I can convert that crypto back into fiat, because relying on a crypto card is limiting. My current bank is very unfriendly to crypto, but it is not a problem with props. I need more diversification.
Maybe I am overreacting, but I like to plan ahead and mitigate risk as much as possible.
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They are choking off sources to off-ramp one by one.
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Thatâs always been an issue here in the states. I donât see it getting any better either. US Banks are dependent on the US Treasury for liquidity, so they have to stay on the right side of the feds.
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When it comes to crypto, I believe we will get there, slowly but surely
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What is the end game for the regulators? Do the regulators want crypto exchanges to register or not? It shouldnât be this hard.
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Perhaps we may end up having to rely on offshore, quasi-banking solutions, as well. Those that operate outside of the jurisdiction of US regulatory groups, that offer uninsured solutions, but without the headaches.
Hopefully not, but wider adoption of traditional crypto does not seem likely, since the US Government has basically ensured it.
-I think, preventing wide adoption too early is the goal. Probably, they realize that even with KYC requirements for everything, they cannot have full access or control if wider adoption occurs.
It would be too easy for people to use crypto to exchange for goods and services without the government knowing about it (or being able to tax it). Since you can literally create your own wallet for some of these coins, itâs just too impossible to stop.
Probably, the hope is that they can implement their own, digital currency before wide adoption happens. This way, they can steer the majority to those solutions, which will ensure that they have full access and control to everything.
Traditional crypto is already too complex for most people still. If the government can also make it too troublesome and difficult to exchange etc., then it will be easier to push the majority towards their user-friendly solution that is available everywhere, especially when traditional crypto is not available everywhere.
Maybe this view is too simplistic, but maybe not.
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Supream court could hear this case
Coinbase Suit May Finally Send Crypto Debate to US Supreme Court
The SECâs new lawsuit against Coinbase Global Inc. appears best positioned among cryptocurrency cases to let the US Supreme Court finally decide if digital assets count as securities.
The crypto tokens traded by Coinbase users should be treated as unregistered securities, the US Securities and Exchange Commission said in the suit filed June 6 in federal court in New York. The importance of that issue, combined with the caseâs big actors and relatively clear-cut facts, makes it more likely to reach the nationâs high court than similar lawsuits against peers like Binance Holdings Ltd. and Ripple Labs Inc.
âIt goes to the heart of the nationâs market structure and our system of traditional finance,â said Michael Pierson, managing partner of the global corporate practice at FisherBroyles LLP in New York.
The legal question could unlock the door to broad federal enforcement of the crypto industry under securities laws. Coinbase shares fell 12% on the day the SEC filed its lawsuit.
The SEC charged Coinbase with two big violations, selling unregistered securities and operating an unregistered exchange, according to professor Erik Gordon of the University of Michigan Ross School of Business.
âBut youâre only running an exchange if it deals in securities,â he said. âThat will be the issueâ for the Supreme Court.
Coinbase is willing to take its legal fight with the SEC all the way to the Supreme Court if necessary, the company said on the day the lawsuit was filed.
Is This The One?
https://www.yahoo.com/finance/news/coinbase-suit-may-finally-send-090042813.html
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Wow, thatâs a lot of money. Are they now good to continue operations without further SEC problems?
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