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There are rules and regulations for every industry, but no specific rules for cryptocurrencies lead to unwanted legal tussles.
The tussle between cryptocurrency exchanges and the Securities and Exchange Commission is common. Several crypto-based companies left the United States in the past few years and secured approval in other nations.
ShapeShift, an SEC-troubled cryptocurrency exchange, is reentering the cryptocurrency sector again. Soon after the regulatory commission’s notification, the firm paused its operation in 2021.
In a March 05, 2024 filing, the SEC said it might accept the settlement of the exchange, which includes a $275,000 fine and an agreement that it will not violate the Securities Exchange Act again.
The troubled exchange offers service from more than 50 crypto coins/tokens and has a more than 30 thousand user base.
As per the SEC claims, ShapeShift was operating as an unregistered dealer in the United States, similar to the allegations imposed on Kraken, Coinbase, and other leading crypto exchanges.
The firm noted in its filing, “ShapeShift regularly bought and sold crypto assets for and from its accounts, carrying inventory in – and holding itself out to customers as willing to buy and sell – the crypto assets offered on ShapeShift(dot)io.
ShapeShift’s ‘X’ account is actively posting the market update despite suspending its operation in the United States. As per the analysts, the company’s social media activities are to retain its users for their exchange.
Are Centralized Exchanges Specifically Targeted by the SEC!
Almost every cryptocurrency exchange operated in the United States has faced legal troubles by the nation’s SEC. Coinbase and Binance, the leading centralized exchanges, also face a legal battle with the Securities and Exchange regulators.
On February 22, 2024, Kraken, one of the leading crypto exchanges, filed a motion to dismiss a lawsuit by the United States SEC.
The pattern of cases against the exchanges is similar, as most were filed on the count of unregistered exchanges.
Market Growth After SEC Approves Bitcoin Spot ETF
Specifically, not after the approval of BTC spot ETF, but the market has shown positivity since January 01, 2024. The regulatory commission approved the ETF on January 10, 2024.
Dozens of analysts have claimed that the ETF has lured millions of news users for the sector and attracted billions of dollars toward Bitcoin and the market. The market leader, Bitcoin, has surged more than 52% in the past 30 days.
According to CoinMarketCap, Bitcoin was trading at $66,109, with an intraday decline of 2.05%. However, there are several claims that the price of BTC will continue to grow as the 4th Bitcoin halving is likely to occur by the end of April 2024.
Ethereum is the second most prominent crypto in the market in terms of market capitalization. There is speculation that the applications for Ether spot ETF might get approval in May 2024.
The past few years have turned out to be profitable for meme coins; some newly launched memecoins have performed significantly in the past 52 weeks. Dogwifhat (WIF) has become the most prominent memecoin of the market.
WIF started trading at $0.0677, and as of writing, its price is 745% higher than its all-time low or the filing price.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
