According to David Sacks, a close associate of Elon Musk, a secret alliance has been created to destroy crypto assets through the SEC’s “usurpation of Congress.”
Obviously, these theories have caused no small amount of chaos when it comes to the price of Bitcoin and Ethereum, below are all the details.
Summary
SEC vs Crypto: the words of Elon Musk’s collaborator
Based on the latest news, we see that Bitcoin and Ethereum, the two major crypto assets by a wide margin, have fluctuated sharply this week following a sudden regulatory action that has shaken the cryptocurrency world.
Specifically, the price of Bitcoin fell to levels not seen since March, following legal actions by the US Securities and Exchange Commission (SEC) against Binance and later Coinbase.
As is well known, these are two of the largest cryptocurrency exchanges in the world. This resulted in a serious warning from Coinbase. In addition, recently, David Sacks, a technology investor who works closely with billionaire Elon Musk, owner of Tesla and Twitter, claimed other news, without providing evidence.
Specifically, he stated that SEC Chairman Gary Gensler and influential US Senator Elizabeth Warren have formed an alliance to destroy cryptocurrencies in the United States.
Logically, this statement contributed to a huge drop in the prices of Bitcoin and other cryptocurrencies. Specifically, Sacks, during the All-In Podcast, along with other investors such as Jason Calacanis, Chamath Palihapitiya, and David Friedberg, said:
“Trouble is, Gensler has an alliance with Elizabeth Warren, and it’s rumored she’ll make him Treasury Secretary if he basically destroys cryptocurrencies in the U.S.”
The SEC’s charges against Coinbase and Binance
During last week, the US Securities and Exchange Commission (SEC) shook up the cryptocurrency market with its charges against Coinbase, alleging that the exchange was operating illegally.
We see that this is just one more regulatory effort against the crypto sector, following the legal action against Binance, the world’s largest cryptocurrency trading platform, which has been accused of various violations, including inadequate management of user funds, high trading volume, and regulatory circumvention.
Regarding these allegations, Palihapitiya had previously stated in a podcast that “cryptocurrency is dead in America,” making an accurate prediction that regulators would target cryptocurrency companies such as Coinbase after cryptocurrency prices collapsed in 2022 leading to the collapse of the FTX exchange.
Sacks further commented as follows:
“What Gensler and the SEC are saying is that it is not legal to operate a cryptocurrency exchange in the United States. I believe Gensler is far exceeding his authority to make such statements. It is not up to the SEC chairman to decide whether or not Americans should hold cryptocurrencies.”
In addition, we know that earlier this year, Warren said she wanted to “build an anti-crypto army” as part of her re-election campaign, citing a Politico source.
The controversies in the SEC’s lawsuit against Coinbase
As anticipated earlier, the SEC recently filed a lawsuit against Coinbase and Binance, two of the world’s leading crypto exchange platforms in terms of trading volume.
However, we see that the SEC’s lawsuit against Coinbase highlighted a direct contradiction to the exchange’s demand for a clear regulatory framework for cryptocurrencies from the regulatory agency.
According to the SEC, Coinbase had been operating as an unregistered broker since at least 2019, despite the fact that the SEC had approved its IPO application in the same year.
Recently, Coinbase filed a court action to try to force the SEC to respond to a petition regarding cryptocurrency regulation.
While some argue that the exchange never actually wanted regulation, it is widely acknowledged that the lack of clear rules for the cryptocurrency space is a concern for many cryptocurrency market participants.
Coinbase could therefore be open to regulation once clear rules for the industry are established, although it seems that this may still take some time, especially considering the 2024 US presidential election and the possibility of regime change even within the SEC.
