"Can the crypto market survive or be defeated by the SEC?"
A market analyst at digital asset broker GlobalBlock named Marcus Sotiriou thinks the regulatory war on the cryptocurrency sector is just beginning.
This is because the Securities and Exchange Commission (SEC) of the United States (US) including the New York Department of Financial Services (NYDFS) was found to have ordered Paxos Trust Company to stop the Binance USD (BUSD) mint for unregistered withdrawals.
It is widely known that the SEC's lawsuit against Paxos came shortly after crypto exchange company Kraken reached a $30 million settlement and agreed to stop their staking service.
Sotiriou said the allegations against Paxos were not only absurd but confusing as the SEC's follow-up action was completely off the mark.
He also stated that the SEC has still failed to provide more detailed explanations of the regulations in the crypto market as many individuals are struggling to figure out how to legally offer digital asset services.
Sotiriou also said, the increase in the number of lawsuits against crypto companies in the US will result in the global development of digital assets being stunted.
Meanwhile, Binance Chief Executive Officer (CEO) Changpeng Zhao (CZ) mentioned that his company will review other projects to ensure its users are protected from any threats.
