- 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.
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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.
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