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U.S. Congress introduces Crypto Bill to clarify regulatory authority, amid concerns of crypto industry marginalization
SEC Unleashes Chaos on Crypto 🥵
The U.S. Securities and Exchange Commission (SEC) — that big wolf of the crypto world — has decided to go straight at two major players in the crypto exchange game – Binance and Coinbase. 👀
🚨 The result: We’re riding a rollercoaster as the price of coins has gone wild, with altcoins revisiting the 2022 lows. Here’s who took a fall leading the pack.
First up is Binance ⚠️
SEC charged Binance and its CEO, CZ, with playing fast and loose with federal securities laws.
The charges 🚔 👉 Operating an unregulated international exchange 👉 Mixing and diverting customer funds to CZ-owned entities 👉 Setting up a faux U.S. branch to dodge the law
CZ, however, has denied all these charges via Twitter.
Impact on Binance US 🇺🇸 Binance US is feeling the heat! 🥵 The SEC filed a motion to freeze Binance US's assets and force it to return customer funds. In response, Binance US has:
Announced plans to delist up to 100 trading pairs and suspend its over-the-counter (OTC) trading service.
Assured customers that their funds were safe and secure.
Binance also took to Twitter to stand its ground.
Here’s Binance’s response in a nutshell: "Whoa, SEC, chill out with the tactics!” They’re calling the SEC’s tactics "aggressive and intimidating”, and all this heat is causing some banking hiccups. 🏦
They're hitting the pause button on USD deposits
They’ve informed users that the banking partners might pause fiat (USD) withdrawal channels as early as June 13, 2023
As a precautionary measure, Binance is transitioning to a crypto-only exchange for the time being
Next in line is Coinbase ⚠️
SEC’s allegations against Coinbase: 👉 Coinbase operated as an unregistered broker, securities exchange, and clearing agency for four years 👉 Coinbase Staking Program constituted an unregistered security offering
In simpler words, SEC believes Coinbase has been acting like a middleman for trading financial securities (like stocks or bonds) and offering an investment opportunity, similar to selling shares in a company, without proper permissions and registrations. 🔖
Despite the SEC throwing legal curveballs at Coinbase, the company is assuring all users that their assets are as safe 👇
Armstrong tweeted that Coinbase has no intention to delist any of the tokens mentioned in the case and will continue its normal operations until a court decision is reached.
And he didn’t stop there! He swung at the SEC for its lack of clarity and consistency in regulating the crypto industry.
The common thread between the lawsuits? 🪡
The trading of unregistered securities. The SEC named several crypto assets, including Polygon (MATIC), Solana (SOL), Cardano (ADA), BNB, and BUSD, as examples of these unregistered securities.
The cash exodus 💸
CZ recently tweeted that users pulled out $392 million from the exchange in just one day. But don't worry, it's not a crypto apocalypse. 👀
👉 CZ says it's likely due to arbitrage traders moving their money around on a day of big price swings. 👉 Binance is still sitting pretty with a hefty amount of Bitcoin in its coffers.
Here’s how the market is reacting to the SEC playing the sheriff, and it’s not very…good 🤔 Let’s see how this series of events impact us further in the coming weeks.
If you liked reading this, feel free to click the ❤️ button on this post or restack it so more people can discover it on Substack 👇
Sam Altman, the boss at OpenAI, implied that India's plan to make an AI tool like ChatGPT might be too hard. He shared this during a chat with Rajan Anandan, a big investor and former Google India leader, at an event hosted by The Economic Times. He hinted that creating something like ChatGPT is a huge challenge for India.
It’s okay, though, who needs ChatGPT when we have ChaiGPT 😳
Andreessen’s article paints a bright picture of AI's future, arguing it's a boon, not a bane. He believes AI can boost human intelligence, enhancing everything from science to arts. Common AI fears, like job loss or threats to humanity, are dismissed as baseless.
Andreessen believes that AI is our ally in tackling global issues like climate change and disease 🪄
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