Berenberg named the following “victims” of the SEC


Stablecoins and the decentralized finance (DeFi) sector are likely to be the next targets SEC in the fight against the crypto industry. This is stated in the report of the investment bank Berenberg, which was reviewed by CoinDesk.

According to the company’s analysts, the SEC will focus on regulatory compliance of the two largest stablecoins by market capitalization, Tether (USDT) and USD Coin (USDC).

According to the report, if the agency hits stablecoins, it will significantly weaken the DeFi ecosystem.

In particular, the forced regulation of USDC will negatively affect the financial position of Coinbase. Experts noted that in the first quarter of 2023, the exchange received $ 199 million – about 27% of the company’s total profit – from interest income from the issuance of a “stable coin”.

Berenberg also noted that the SEC has defined bitcoin as a commodity, not a security. At this rate, the company predicts that the first cryptocurrency will become “the ultimate beneficiary of repressive measures.”

In the end, regulatory restrictions will lead to the U.S. crypto industry becoming more focused on bitcoin, analysts concluded.

In June, the SEC sued Binance and Coinbase. The latter refused to change the business model due to the Commission’s lawsuit.

Coinbase General Counsel Paul Grewal said the agency’s powers “do not include the power to prohibit [децентрализованные платформы] unless expressly authorized by Congress.”

Recall that former SEC lawyer John Reed Stark predicted a long struggle between crypto exchanges and the regulator. He urged clients of the trading platforms to “stop using them now.”

Earlier, the founder and ex-CEO of MicroStrategy, Michael Saylor, predicted a multiple growth of bitcoin due to the actions of the regulator.

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