Prof. Alexander: ‘I’m not sure SEC will succeed against Binance’
- Professor Carol Alexander says the U.S. SEC may lose to Binance.
- She reiterated the need for crypto in an interview with CNBC today.
- Prof. Alexander expects regulatory clarity to bring price stability.
It is conceivable that the U.S. Securities and Exchange Commission may fail in its lawsuit against Binance, says Professor Carol Alexander of the University of Essex.
Here’s why SEC may lose to Binance
Professor Alexander is not entirely convinced that the regulator is financially strong enough to take on Binance especially after spending lavishly on its ongoing battle with Ripple.
I’m not sure the SEC is going to succeed. Binance has very deep pockets and I’m not too sure about the financing of the SEC. After all, it comes from traditional finance and equity firms.
It is noteworthy, though, that Binance and affiliates together with Coinbase Global Inc lost more than $4.0 billion in outflows last week following the SEC lawsuits.
On Monday, Binance Nigeria Limited was ordered to halt operations as well.
Prof. Alexander reiterates the need for crypto
Nonetheless, Professor Carol Alexander did concur that some of the cryptocurrencies could indeed be classified as securities. It’s what the SEC claims in its lawsuit against Coinbase as well.
On CNBC’s “Squawk Box Europe”, she agreed that crypto could facilitate financial scams and fraudulent activities but said:
We must have crypto. We can’t have digital economy without blockchain. Can’t have blockchain without crypto. So, it must be regulated properly. Then we’ll only have few bad players.
Prof. Alexander also noted that the conventional financial landscape is not entirely free of fraudsters either. She expects regulatory clarity to bring price stability to the broader crypto space.
