Suits brought by the SEC against cryptocurrency businesses raise concerns about the future

Industry executives claim that with their most recent measures, American officials are stating more blatantly that they want to make sure that cryptocurrencies have no place in the established banking system.

Leading authorities are also speaking more candidly about their opinions on cryptocurrency's advantages. We don't need additional digital money, SEC Chair Gary Gensler said in a statement to Bloomberg on Tuesday. The U.S. dollar is a type of digital currency that we already have.

The outcome of the legal dispute may significantly slow the development of the cryptocurrency market or, conversely, limit the SEC's regulatory authority.

Washington, D.C. The lawsuits have now followed the crypto winter and the alleged fraud perpetrated by Sam Bankman-Fried, the creator of FTX.

The world's two largest cryptocurrency exchanges, Binance and Coinbase, were sued last week by the U.S. Securities and Exchange Commission, escalating tensions between the government and a volatile sector that has been plagued by scandals and market collapses.

Both Binance and Coinbase are accused of breaking the law by functioning as stock exchanges without filing any paperwork with the SEC. Along with other allegations, Binance and its CEO are accused of misappropriating user cash and sending it to a different company. The SEC most recently requested that the U.S. platform of Binance have its assets frozen by a federal judge.