Impact of SEC Lawsuits on Binance and Coinbase: A Deep Dive into the Crypto Market

hello everyone um so today's uh episode is about the security Exchange Commission of America

um suing binance.us and the coinbase exchanges and what it has done to the crypto industry again how one man is

like hurting the crypto industry I mean we've seen episodes uh posted about how Doc one with this Luna and how SBF with

this FTX that cost massive Panic with the crypto industry and those were kind of criminal cases almost bordering on

carbon but Gary ensler who's the chairman of SCC has done it in a very gray way and today we'll understand what

it has done and why it's causing the altcoins to go down in such a panic and what it's all about right so as usual

starting with the disclaimer and warning I'm not a financial advisor I'm not an investment expert I've just started

these videos to provide more information and Clarity based on my understanding of the process and again make your own

decisions based on your own research and never ever send your money to someone who calls and was a investment advisor

or a financial broker because you know most of these people are their frauds basically and a lot of people have lost

their money and that's why I keep repeating this in every video that I make and also I don't have any close

groups telegram group or Whatsapp group I'm publicly active on Twitter at the right channel to address my handle not

just me if you want to get more up-to-date information on crypto or financial information then Twitter is a

great source of knowledge and information for these kind of things and you can get the information much faster

than the other sources so for let's first start with what happened this week you know we are in in almost like the

10th of 11th of June 2023 starting on the 5th of June 2023 uh we saw that altcoins other than so typically other

than Bitcoin ethereum all the other crypto tokens are commonly called as adult coins alternative coins and they

fell rapidly this weekend on an average there was about 30 person fall on most of these alkynes and some of them even

losing like you know 40 to 50 percent comparatively Bitcoin fell only five percent but this is a rare occurrence

where Bitcoin has not Fallen that much but you know the other tokens have fallen almost all of them have fallen

significantly lower like you know this is probably a one-off event where this has happened and you know almost most of

them all the top uh alkynes like mat Tech BNB link I injective render atom uh cardano they all fell down like almost

like you know more than 30 percent this week and what led to this so there was a chain of events and I'm just listing

down the top four although there are some additional events that happen on 5th of June 2023 security Exchange

Commission which is like the uh governing body or the financial body of America like how India has uh sebi a CBI

and how UK has got FCA America has got the security distance commission which deals with the stock trading and

basically anything to do with securities they sued Finance the U.S entity which is binance.us alleging the sale of

Securities mainly calling out BNB token and busd token as Securities which are balances own tokens practically now on

6th of June 2023 the next day very next day SCC also sued coinbase again it's one of the world's largest exchanges for

operating in script or trading services without as an unregistered Securities Exchange so any uh body any organization

that is trying to sell a security a com an entity trade registered as a security or identified as a security by SEC has

to register themselves with the ACC and then only they can actually trade in the American Border so a lot of that's why a

lot of crypto exchanges don't operate in America because the the regulations are very different over there

um and later after these two announcements have made they also went ahead and classified almost all of the

top alt coins the top tokens other than Bitcoin and ethereum as security so uh SCC or the garrigan's law was the

chairman of SCC has previously said that Bitcoin is not a security in the commodity

um this list included like polygon cardano Solano um Cosmos almost you know took this name

a few button is particularly like put a blanket around everything other than Bitcoin and ethereum said that they are

all alkoids and after that Robin Hood which is probably one of the most popular exchanges of America as well the

common man goes to for trading uh the commonly uh the the main thing that they use is or trade is stocks but they also

trade some crypto and they went ahead and learned the delisting of the most popular altcoins that were on the

platform especially martek Solon and cardano from the June 27th and that cost a big sell-off because the American

public or a lot of people thought that no there will be no opportunity for them to trade these tokens any longer and

they wanted to liquidate those assets and cost a massive Panic selling from that end right and

to understand further what we are going to talk about you know all the terminologies that we're going to talk

about you need to understand what is the difference between a security and a commodity so I made a video because it's

not the first time this is happening security screens commission already started this three years ago in December

2020 almost two and a half years ago so in December 2020 they sued Ripple Corporation for listing xrp as they

called xrp uh crypto token as a security and that case has been running for two and a half years but when that started

when similar to what I'm doing now I had made a video in episode 16 two and a half years ago

explaining what asses he had done and what is the difference between a security and a commodity so spend 15

minutes watch that episode I'll give you the link to that video in my description then you will understand this content

better but you know while you're watching the full you know 15 minute video or if you decide to continue if

you've already watched it before I want to just recap 45 seconds from the video and just play out one part of the video

which I said in that video where now I mentioned that this could happen to all the other tokens anytime when SCC went

after Ripple and xrp but it's absolutely unclear why the SEC chairman he decided that Bitcoin and ethereum are crypto and

why he did not want to bring them under Securities which means that he's doing a favor for those cryptos compared to the

xrp and that could mean that he can apply the same rule for link TRX vet any other billion dollar cryptocurrency I'm

classified on a security because there is no yardstick or a parameter that's been given to say why is xrp as security

and why are the other cryptos are not securities so that's why the Ripple have called it

an attack on all of the crypto and all of the blockchain Innovation basically so now that you understood the

difference between security and commodity um and why in my view this the crypto

tokens are necessarily Commodities and not Securities and that's just my view right but the problem here is that there

is no definition or react stick or clear defining parameters that SEC gives to say that this is why this is a security

or this is why this is a commodity like for example if you're going to classify a car as ultra low lower Mission car or

not there are clear guidelines to say that if is in this Cc or if it's a petrol if it's a diesel car or if it's a

hybrid car it's there are different parameters and you can apply those parameters very clearly and you can

measure a car and say yes this is a low emission car or no this is not a lower emission car these are very clear

parameters that you can put Tokar for example but if the government doesn't give any guideline and they say that you

know cars are going to be either lower Mission or not but then looking at a picture you know one guy says this black

car is low emission one guy is this black card is not low engine then you know you are always arguing against the

rules and even though there is a role to say that if you enter into a low emission Zone you need to pay a penalty

there is no definition of what a low M Shankar is in the first place right so that is what is happening here so

ultimately what it means is that the person who's leading the security distance commission with unlimited

powers and no rational they can actually decide what becomes a security and what becomes a commodity and that person

today is Gary Gensler the chairman of SCC Securities in commission so before we look into Gary again in in a little

bit more detail what happened to the xrp versus CC case you know we started December 2020 but what has actually

transpired so almost two and a half years I'm not a single shred of conclusive

proof that SCC has been able to produce in court to prove their allegation that xrp is a security and xrp has continued

to trade after the first couple of months in almost all countries with absolutely no issues now the only thing

the SEC had used in the court and tried to put the definition of security for xrp something called as a hobby test

it's a tool that came as an outcome of a Supreme Court ruling or Supreme Court case from the 1946. now ironically

um what SEC is trying to do is it's trying to use a tool or a ruling from almost like 80 years from decades back

to apply to a technology of blockchain and crypto where the the situation is completely different the landscape is

completely different but even with that even with that one tool that they've been trying to use uh ripples lawyer

store Tyler already said that and there is absolutely not a single thing that they've been able to satisfy or prove to

even with the Holy stress to say that xrp actually applies or how it actually applies to xrp

that's a scenario it's still ongoing there is still no Clarity and you know it's dragged on for this this long right

so look at Gary Gensler just for a minute right so and I'll provide all the links to some of the content I'm talking

about in my description there are several good articles that can you can read which

gives you a longer narrative as well so one of the things about what makes Gary Gensler so hypocritical is that

he literally had nothing to do or he did nothing against doc one on the lunar fraud he did nothing against Sam bankman

on the FTX fraud these are two biggest frauds and two biggest frauds twist um operating on the crypto space and he

did nothing to protect the investors against these two people right so and Sam bankman operated on the U.S soil he

had discussions with Gary and so literally um like you know about a few years back

when he was a professor in MIT the same person Gary Gensler he called these crypto tokens that is now classifying as

security as Commodities very clearly and he gave his argument and definitions as to why these were Commodities so come a

few months later you know he suddenly changed his own mind though to as to why it's not a commodity and it's not a

security in fact this man was pulled in front of congressional committees and Congressional committee asked him point

blank what do you think about ethereum you've already called out Bitcoin as a commodity what do you think about

ethereum tell us why tell us if it's a security or a commodity and why and 10 times this question was asked again and

again and again um the one of the one of my friends he shared a video as well about this whole

thing and he didn't give a single answer and it was a very point blank question do you think it's a security or a

commodity just tell me yes or no he did not give an answer even after almost 10 times being repeatedly asked that

question that's the kind of person he is you know tries to keep things in the gray so he can call it what he wants

and till this point everything is based on you know researched articles and and probably verifiable use right but there

are also multiple news reports that are coming out in Bloomberg and other uh you know news articles and always take these

with a pinch of salt because you know they don't always do enough research to come out with these articles so I'm I am

going to give the benefit of the doubt and say that I am not able to verify the authenticity of all of this but I'm

still going to explain you know all the news articles images right so Gary gunzler has apparently met with the FTX

CEO Sam mcnut right in the last few months and there is a connection to some magnify other than this that you know

when he was teaching in MIT the person that he reported into Glenn Ellison was actually the father of the alamado CEO

Carol Renaissance she was one of the again Main culprits in FTX working with some Batman fight and you know Sam

bankman fight has always been known to be close to the Britain Administration and he is openly donated that is a clear

fact that is openly donated heavily to the bitter campaign so he has deep ties with the brittle Administration he's

always had ties and unfortunately because it was such a public drama you have to go to jail otherwise I think you

would have probably not if if it didn't get exposed as much as it was and you probably wouldn't have even gone to jail

because of the deep connections that he had Gensler had basically allowed SBF to run without

any scrutiny and and you know when he was exposed there was a lot of fire from the congressional committees over a

security Exchange Commission rule a role to prevent the FTX fraud when they had ample opportunities to know and prevent

such a train crash from coming a long time right and they did nothing absolutely nothing against it you know

the likes of how they are suing coinbase how they were suing binance how they saw the swing Ripple they didn't lift a

finger against FTX or something now if you need a reminder on Whose ambachment right is or what he did with FTX if you

hadn't actually read that story or heard that story again I'll give you links to that episode as well where I explain

how he uh orchestrated one of the biggest crimes in crypto and you know how much of an impact that he had caused

after the lunar fall with this FTX exchange right and how much it impacted especially the American investors with

the FDA Christians going down right so um SCC arguably you know their their motto to prevent the American investors

from harm they let this happen and Gary Gensler was at the helm of it when he let it happen

so one more tweet of relevance before we talk about what happens now is uh from Brian Armstrong who's the CEO of

coinbase right so he and even Robin Hood leadership team joined in the same argument that you

know they SCC had reviewed the coinbase business and that's when they allowed them to become public you know if you if

a company has to go from private to public there's so much of scrutinization has done nothing has changed in the way

coinbase is operated from 2021 to to 2023 so if SCC under Gary councilor allowed coinbase to become public

company knowing that these assets were being traded even at that time what has stopped them from preventing them from

going public and why did they not file a case against coinbase or binance earlier right now what's the what does it to do

with the timeline at this point because if this was the security this has been a security all along right you know it

does did not magically overnight become a security So what had changed and one of the things that ICC has said is that

you know come in and register if you register so if you register as a Securities Exchange then you can

continue to trade Securities Nothing is Stopping You you know even if it does mean that no cardano or or Matic is

classified as a security by the SEC you can still continue to trade it as long as you register so they said we went in

we would try it repeatedly for months and months together and Robin had said that they tried for 16 months they tried

to go to the SEC office try to register try to get clarity and wasn't given you know they were giving conflicting

statements but nothing was done from the SEC side to register or to give more clarity to say this is what you guys

need to do and you can come and register this is a commodity nothing was given right so again this is everything that

they have been saying to say that you know we need the rule book to be clear we need to change the regulations in

such a way that it's not going to harm America that's what they are saying right now the harm is actually for

America because in everybody is eventually going to move out of America if this doesn't continue and if those

this sort of you know Clarity doesn't exist then these exchanges are just going to find a way to just move out of

America and just operate out of America all right so now what happens to the crypto value now so I will use share it

in Twitter and being actively posting for the past few days so on the SEC issue when it happened for

xrp I said the same thing you know don't panic cell I wouldn't Panic sell and I'm putting my crypto my xrp specifically

um and and keeping it aside I'm not going to trade at the loss right now and crypto and xrp fell from what 50 cents

to 0.5 dollars to about 0.2 dollars more than 60 percent in a span of few days right so I suggested a lot of patience

and I explained with my own rational how I had been waiting from 2018 for it and eventually

um in in about four or five months in April 2021 xrp went from you know 20 cents that it was to almost two dollars

and one point eight one point nine dollars so about 10 times more in the next four or five months and that's what

I was posting to say that although it has happened it is just a knee-jerk reaction this is the case that has been

registered nothing is wrong you know nobody is calling for a ban on crypto so even though some of the exchanges are

like coinbase even at that time went ahead and delisted XR Brian Armstrong still said that you know he's an attack

on the entire crypto we need to stand together and they didn't stand together that's why what is happening is

happening today but again I see it very similar to the 2020 case you know Market needed Clarity and I think this case

would bring more clarity now Ripple comparatively is much smaller to coinbase and finance but they still

spent about 200 million dollars in their legal battle so far with uh um with SCC and coinbase and binance are going to

have deeper pockets and they would probably fight the longer fight and better fight and if you're a suits fan

this is probably the time to bring in the Harvey Specter of lawyers and and just go against SCC and get the final

Clarity that is needed you cannot so with all the legislation and all the legal powers that some are available in

America and this cannot be the scenario that just one person you know takes away the benefits of of crypto for America

right or the American people that's where it is and the final thoughts and I've said this before you know my my

intent is to educate people in crypto and whenever there is a um when there is a normal scenario there is a boom you

know probably I might have not posted but whenever there has been our issue Whenever there has been a problem I've

tried my best to try and explain that scenario and the lunar crash or the FDA crash the usdc crash and the reason why

this education is important is because you know it prevents you from taking a panic decision so for example when the

usdc Came Crashing Down to 90 cents a lot of people who were holding stable coins they were just selling usdc at 90

cents so what is the whole point right because when you understood what was exactly happening the scenario was so

absurd that you were literally giving away your 100 rupee note for 80 rupees or 90 rupees now if you had a legitimate

cash in your account I mean in your in your home and somebody said that out of something they created a rumor and you

go ahead and give that 100 rupees in the market and and take 80 rupees for it that's exactly what people are doing

doing and all I did try to do was you know give out the information and the education that I had understood from

from digesting all that information I said look no there's no point there is no Panic here no need to actually sell

and within two or three days within a few days it actually went back to one dollar and people who sold it at 90

cents look you know absolutely rubbish at that point of time right so again um this is not Financial advice but this

is again just to tell you that you need to do your research to not make a panic decision or not you know get into a

panic decision so again people have asked me what are the tokens I'm doing in DC or dollar cost average and I like

I said my top tokens that I've been doing a DC at this point or render injective cro atom and pnb this is what

I have done with the liquidity you know or with whatever liquidity I had again I've also taken positions on Dion and

cash cash per currency before and I had tweeted this in between but this is between the last video and now and I've

done a little bit of DC on post opens as well but that's all I have I have done I haven't taken new positions or haven't

increased my position Matic or the other tokens just wanted to be clear just a personal decision just wanted to share

it and finally uh before we go this just wanted to show you the xrp chart right this is the xrp chart the full five six

years of chart now here there is lot of you know ups and downs but the point that is most interesting is this is the

point December 2020 where it was almost like you know 60 50 cents it had fallen down to about 20 cents and within a span

of about four months you know it went up to that one one point eight one point nine dollars that I talked about right

so if you look at the the map I mean if you look at the chart overall that is practically a blip on the chart and it

doesn't even register if you look at the five year chart or the Fourier chart that somebody told you that was a

significant event at that point looking at everything else that has happened that looks insignificant at this point

of time right so same way this will look insignificant for a point of time it's just at this moment at this point it's a

knee-jerk reaction and that's all it is and hopefully you found this video useful and informative and if it if it

did please post your comments thank you and see you next time