- Investment bank Berenberg published a report saying the SEC may target stablecoins and DeFi next.
- Lawsuits against crypto exchanges such as Binance and Coinbase are still ongoing.
- Bitcoin may remain unaffected as the SEC deems it a commodity instead of a security.
In its latest research report, Berenberg, an investment bank, predicts that stablecoins and decentralized finance (DeFi) will be the next focus of the US Securities and Exchange Commission (SEC) in its ongoing crackdown on the cryptocurrency industry.
The SEC’s attention is anticipated to shift towards ensuring regulatory compliance within the stablecoin sector, including the two largest players by market capitalization, tether (USDT) and USD Coin (USDC), as well as DeFi protocols.
This follows the recent lawsuits filed by the SEC against Binance, one of the leading cryptocurrency exchanges, and Coinbase, another prominent exchange. Both cases revolve around allegations of violating federal securities laws.
Interestingly, the SEC’s classification of Bitcoin (BTC) as a commodity rather than an unregistered security may play a crucial role in the evolving regulatory landscape. According to the Berenberg report, Bitcoin is expected to benefit the most from the regulatory crackdown, solidifying its position as the primary cryptocurrency in the United States.
The report also highlights MicroStrategy (MSTR) as a potential outperformer in the market. As MicroStrategy focuses on acquiring and holding bitcoins, it is well-positioned to take advantage of the regulatory developments. The anticipated shift in the US crypto industry towards a more Bitcoin-centric landscape is likely to bolster the company’s prospects.
As the SEC intensifies its efforts to bring stability and oversight to the cryptocurrency market, the impact on stablecoins, DeFi protocols, and the overall industry remains to be seen. Market participants will closely monitor regulatory developments as they navigate the evolving landscape of digital assets.
Read Also :
disclaimer read moreCrypto News Land, also abbreviated as "CNL", is an independent media entity - we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
