On June 5, Eastern Time, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance, the world’s largest exchange, and its CEO Changpeng Zhao (CZ).
The lawsuit involves billions of dollars and related interest, and also sues Binance’s related crypto trading business.
After the news broke, the entire crypto market fell into a wave of emotional panic, and Bitcoin (BTC) continued to fall by 1,000 points.
After the news that triggered this brief panic, the SEC announced trading restrictions on well-known altcoins such as SAND, ADA, SOL, and MATIC in the United States.
Immediately afterwards, the SEC filed a lawsuit against Coinbase, the world's second largest exchange. The market is in an uproar. What exactly does the United States want to do?
Is it really to protect the property safety of the people in this country?
Behind all of this lies a huge web of capital conspiracy. Let us analyze it in detail: U.S. debt crisis: Although the U.S. debt ceiling crisis has been temporarily alleviated, the risk of government fiscal deficits still exists.
The U.S. government is clearly aware that the debt crisis is so loud that once it breaks out, the entire government will suffer bad reputation.
Therefore, solving the funding problem in the short term has become a core task. This is the second time this year that the United States has sanctioned Binance. The last time the United States received a fine of US$100 million.
The amount involved in this lawsuit directly increased ten times, and even included interest. It seems that they are really "poor and crazy"!
The other side of the U.S. debt crisis: In the process of resolving the debt ceiling crisis, both sides reached some kind of agreement. The debt ceiling deal at the time canceled one bill, the U.S. Bitcoin Mining Tax Increase Act. If the bill passes, taxes will increase by 30%.
It can be seen from here that in the process of resolving the debt crisis, the two sides reached compromises on certain issues.
Macro perspective: Although the crypto market is a relatively young venture capital market globally, it attracted large amounts of capital during bull market periods.
Although the decentralization of the crypto market has certain conflicts with government power, completely abandoning this market means losing control of it.
Currently, the United States is suppressing Binance and Coinbase, while also restricting mainstream altcoins, seemingly in order to carry out a profound rectification.
However, the real purpose behind it may be to lay out your own market. Because neither Binance nor Coinbase is subject to the jurisdiction of the U.S. government, the U.S. cannot tax its profits, either in terms of funds or earnings. The greedy nature of the US government will not allow this to happen.
Therefore, their real purpose is to rectify the local market, gradually develop their own exchanges, lay out their own markets, and crazily harvest Americans' own wealth.
Cryptocurrency and freedom: Many people believe that cryptocurrency is a free spirit in the Internet era, allowing people to escape the shackles of the centralized financial system.
However, when power and wealth are intertwined, freedom in financial markets is difficult to maintain. The U.S. government’s lawsuit against Binance and Coinbase can be seen as a challenge to the free spirit of cryptocurrency by capital hegemony.
In the future, the encryption market will face more similar challenges, but this does not mean that the development of cryptocurrency will be limited. On the contrary, this challenge will serve as a catalyst for the development of cryptocurrency, driving its continuous innovation and improvement.
Impact on investors: In the short term, the SEC’s lawsuit against Binance and Coinbase will indeed have some impact on the market, especially those restricted altcoins.
But in the long term, the fundamentals of the crypto market have not changed. Investors should stay calm, pay attention to market dynamics, and seize investment opportunities.
In history, many regulatory disturbances have failed to stop the prosperity and development of the encryption market, and this time will be no exception.
Conclusion: The U.S. SEC’s lawsuit against Binance and Coinbase appears to be to protect investors, but in fact it hides deeper political and economic interests. In this battle with capital hegemony, the free spirit of cryptocurrency will face more challenges. However, challenges often come with opportunities, and the future of the encryption market is still worth looking forward to. Investors should remain calm, adapt to market changes, and look for investment opportunities.
Personal opinion: In this wonderful game, we should support Binance without any doubt and no reason, support the freedom of the encryption industry, and support cz. This is a provocation to our entire encryption market, and each of our participants should stand Come out and do your part to oppose this unreasonable farce.
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