His warning comes in the context of the SEC’s actions against Binance and Coinbase. He said that he believes that the platforms are risky and that regulators could have the battle won.
John Reed Stark, a former SEC attorney, believes that investors should withdraw their funds from cryptocurrency exchanges in the context of the actions that entity carried out against Binance and Coinbase.
John Reed Stark, who worked for more than two decades as an SEC compliance attorney, tweeted “Get out of the cryptocurrency platforms now, I can’t say it more clearly”.
The cryptocurrency market is experiencing moments of turbulence due to the regulatory pressure that the SEC is practicing against platforms like Binance and Coinbase and also against cryptocurrencies such as ADA, SOL and MATIC.
The crux of the matter is that the SEC considers that the aforementioned cryptocurrencies are securities that must be traded under license. Since Binance, Coinbase, and Robinhood do not have such permission, they cannot offer such a service to their users. This is also why more exchanges could face the same problem in the short term.
A similar situation was experienced with Ripple (XRP) at the end of 2020. At the time, a dozen exchanges dropped support for the cryptocurrency, which the SEC had also listed as an unregistered security.
Source: Ambito
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