Lawyer's Opinion: The SEC lawsuit could potentially lead to Binance shutting down in the U.S., while Coinbase's situation is more optimistic

ChainCatcher news, American lawyer Brian Frye stated that the SEC has recently sued Binance and Coinbase separately. In his view, the situation for Binance is not optimistic, as Binance has essentially admitted to all of the SEC's allegations, which is a disaster. On the other hand, Coinbase's situation is much better. Coinbase has been striving to comply with the SEC's rules and has been asking the SEC what it wants, while the SEC has consistently refused to respond. Frye believes that at least some courts will oppose the SEC's actions against Coinbase.

Frye believes that the SEC still has not provided any reasonable explanation, failing to clarify what it wants to regulate, what it believes it has the authority to regulate, why it wants to regulate, the purpose of regulation, and how it intends to regulate. For years, the SEC has stated that it does not like any type of crypto asset, but it has not explained why it dislikes them. The SEC has not explained why it considers them a problem, nor has it even pretended to explain how it would regulate crypto assets in a way that it believes aligns with its regulatory requirements.

Frye believes that Binance is likely to shut down in the U.S., but the likelihood of Coinbase shutting down in the U.S. is very low. Coinbase has made every effort to comply with the SEC's rules and expectations, even in the face of the SEC's misconduct.

Additionally, Frye stated that for tokens classified as securities by the SEC, it is advisable for token foundations to write down assets and be prepared to pay fines, which could potentially be a significant amount. (source link)