‘One-Two Punch' Against Crypto Industry: SEC Files Back-To-Back Complaints Against Binance And Coinbase

On June 5 and 6, 2023, the U.S. Securities and Exchange Commission ("SEC") filed back-to-back actions against Binance and Coinbase, two of the largest cryptocurrency exchange platforms in the world,¹ in what the media has referred to as a "one-two punch" against the crypto industry generally.²

At their core, these complaints allege that Binance and Coinbase have offered securities market services including operating a broker-dealer, securities exchange, and clearing agency - without registering with the SEC. If the SEC actions are successful, they will define the law on cryptocurrency services to consider them as securities services that fall under the regulatory scope of the securities regulators. Further, these cases could have implications in Canada by emboldening regulators and clarifying the law regarding the classification of certain crypto assets as securities.