Crypto insider Edward "Coach" Weinhaus said that the Securities and Exchange Commission's allegations regarding Binance's operations could be advantageous to Wall Street but also said it is worth "investigating suspicious claims."
“If the United States is worried about the acceptance of blockchain technology as a threat to the dollar’s dominance, it makes sense to prosecute specious claims," Weinhaus, who is a lawyer and Bitcoin entrepreneur based in St. Louis, told Monetary Brief.
"Recalling the teachings of Merton Miller (late professor at the University of Chicago Booth School of Business and a Nobel laureate). He asks, 'Cui bono?' -- meaning, 'Who benefits?'" Weinhaus suggests that "the beneficiary here would be Wall Street." Weinhaus pioneered the first cryptocurrency course at the Booth School of Business.
Weinhaus, who also helped establish Athena Bitcoin, a global Bitcoin ATM company, said he believes that regulatory “overreach” will stifle the innovative potential of cryptocurrencies in the U.S., predicting that they will choose to flourish elsewhere instead. “Regulatory overreach drives up costs for the accused actors, innocent or otherwise," he said. "The crypto industry will not be immune to governmental whims simply because it is a force for financial inclusion."
As the Securities and Exchange Commission (SEC) cracks down on cryptocurrency exchanges, Binance, the world’s leading cryptocurrency exchange, says the agency’s actions undermine the United States' role as a global hub for financial innovation and leadership.
Disputing the SEC's allegations, Binance contends that the U.S. regulator lacks a comprehensive understanding of cryptocurrency governance.
"Any allegations that user assets on the Binance.US platform have ever been at risk are simply wrong," the company said in a statement. "The Commission has determined to regulate with the blunt weapons of enforcement and litigation rather than the thoughtful, nuanced approach demanded by this dynamic and complex technology. The SEC’s actions undermine America’s role as a global hub for financial innovation and leadership. Digital asset laws remain largely undeveloped in much of the world, and regulation by enforcement is not the best path forward.”
Weinhaus is currently performing doctoral research at Washington University School of Law, exploring the challenges posed by cryptocurrencies to monetary sovereignty. His firm, Athena, played a significant role in facilitating El Salvador's shift to Bitcoin as its legal tender. Weinhaus speculates that if the U.S. perceives the adoption of blockchain technology as a risk to the dominance of the dollar, it is likely to take legal action based on questionable claims.
