Repression against major crypto exchanges will have a big impact on the market

Timothy Massad, who chaired the Commodity Futures Trading Commission (CFTC) from 2014-2017, believes that the lawsuit against the Binance and Coinbase exchanges will have a big impact on the entire cryptocurrency market.

Lawsuits filed by the Securities and Exchange Commission (SEC) have dealt a painful blow to the industry. The result was not only the collapse of the leading digital currencies, but also the weakening of the attractiveness of the blockchain industry as a whole.

The ex-head of the CFTC stressed that US regulators fear the formation of a new bubble in the financial sector and the growth of speculation. These are the threats that come from the cryptosphere.

The SEC is tasked with developing effective mechanisms to protect investors and combat market manipulation. In addition, the agency must compile a list of digital assets that it classifies as securities.

Massad said:

One of the main problems is how to trade bitcoin or ether, which are defined as commodities, on the same exchanges as other assets. Given the slowness of the SEC, I believe that the problem is unlikely to be resolved anytime soon.