Bellevue Bank: Stablecoins and DeFi may become the next target of the SEC
Bellevue Bank warns that SEC may target stablecoins and DeFi in the future.Author: Will Canny, CoinDesk; Translation: Song Xue, Blocking
Berenberg Bank said in a research report on Tuesday that stablecoins and decentralized finance (DeFi) are likely to be the next targets of the US Securities and Exchange Commission (SEC) in its crackdown on the cryptocurrency industry.
The investment bank said that the SEC may now focus on bringing stablecoins (including the two largest stablecoins by market capitalization) and decentralized finance protocols into the regulatory compliance scope.
Earlier this month, the SEC said it was suing cryptocurrency exchange Binance, its founder Changpeng Zhao, and Binance.US’ operating company, accusing them of violating federal securities laws. A day later, it filed a similar charge against exchange Coinbase (COIN).
- Crypto Kernel: Freedom, Carrier and Utopia
- Decoding the Ethscription protocol for creating NFTs on Ethereum using transaction data
- Interpretation of Bitmap Theory
Analyst Mark Palmer wrote that if the SEC wants to reduce the likelihood of unregulated DeFi protocols as feasible alternatives to regulated banks and exchanges, they can “target stablecoins as the lifeblood of distributed finance.”
The report said that SEC could also weaken the DeFi ecosystem by targeting these stablecoins.
Berenberg Bank said that if USDC becomes a target of US regulators, the impact on Coinbase’s revenue could be significant, noting that the exchange earned a net revenue of $199 million from USDC reserves in the first quarter of 2023, accounting for about 27% of total revenue.
The report said that Bitcoin has been recognized by the SEC as a commodity rather than an unregistered security, and is likely to be the ultimate beneficiary of the crackdown.
Given the company’s focus on acquiring and holding Bitcoin, MicroStrategy (MSTR) stocks may outperform the broader market as regulatory restrictions may cause the US cryptocurrency industry to focus more on Bitcoin than in recent years.
We will continue to update Blocking; if you have any questions or suggestions, please contact us!
Was this article helpful?
93 out of 132 found this helpful
Related articles
- Conversation with Maverick: Two years of hard work have brought not only DEX.
- Increasing the validator balance limit from 32ETH to 2048ETH: Will it cause validator centralization?
- New action from Cyber Administration of China: Algorithm filing for every AIGC platform is at stake
- Do you really understand Uniswap v4?
- Vitalik: In-depth Understanding of Cross-L2 Reading – What are the Cross-Chain Proof Solutions
- Why DeFi is Broken: The Importance of Non-Oracle Protocols
- CoinEx fined $1.7 million and reached a settlement with the New York State Attorney General’s Office (NYAG)
