Instead Of Investigating FTX's Clear Loss Of Investors, The SEC Even Sues Binance And Coinbase

Binance and Coinbase crypto exchanges are being prosecuted by US regulators. (Photo; Doc. DailyTechNotes)

JAKARTA The case of the collapse of the FTX crypto exchange company that caused a stir to the public on November 11, 2022, has yet to find legal clarity from US regulators, the Securities and Exchange Commission (SEC). FTX officials actually plan to revive the stock exchange after an incident that harmed investors last year.

Recently, the SEC sued leading crypto companies in the world, Binance and Coinbase, on charges of selling unregistered securities. A number of crypto communities have questioned the motive for a lawsuit against the two crypto exchange giants.

Ripple CEO Brad Garlinghouse has expressed doubts about the motive behind the SEC's lawsuit against the two top cryptocurrency exchanges in the world. Garlinghouse highlighted the SEC's legal force and saw that the US Supreme Court had previously accepted the motion to consider arguments about reducing the federal regulatory agency's discretionary power.

Not only that, but the crypto market community also doubts the extent to which the SEC has the power to fight companies in the realm of law. XRP holders, digital currencies developed by Ripple, often show strong support for Ripple in its lawsuits. In this case, the community invites all market participants to unite against the SEC's arbitrary actions.

Recently, the SEC has been criticized for failing to detect differences in the financial condition of the FTX exchange before the exchange collapsed in November 2022. Therefore, Ripple CEO pointed to FTX's failure as the real reason behind the SEC's actions towards the crypto business.

Brad Garlinghouse firmly criticized SEC Chairman Gary Gensler. He called Gensler hiding behind the lack of power to attack the crypto business directly. Garlinghouse alleges that lawsuits against Binance and Coinbase are the SEC's way of diverting attention from their failure in the FTX case.

At the same time, Ripple, which was previously tackled by the SEC, has reached the final stages of the feud. Further developments in the lawsuit between Ripple and the SEC are likely to occur in the next week when Hinman's documents will be published.

The public is looking forward to the outcome of this lawsuit, considering that Ripple is one of the leading companies in the cryptocurrency industry and the results of this decision have the potential to have a major influence on crypto market regulations and developments in the future.