Binance, the world's leading cryptocurrency exchange, is pushing back against allegations of illegal operations in the U.S. by the Securities and Exchange Commission (SEC). However, according to industry insider Edward "Coach" Weinhaus, this move by the SEC could ultimately prove advantageous for Wall Street.
Weinhaus, a lawyer and Bitcoin entrepreneur based in St. Louis, who also pioneered the first cryptocurrency course at the University of Chicago's Booth School of Business, speculates that if the U.S. perceives the adoption of blockchain technology as a risk to the dominance of the dollar, it's logical to take legal action based on questionable claims.
“If the United States is worried about the acceptance of blockchain technology as a threat to the dollar’s dominance,” Weinhaus told Monetary Brief, “it makes sense to prosecute specious claims.”
Recalling the teachings of Merton Miller (late professor of the University of Chicago Booth School and Nobel laureate), he asks, ‘cui bono?’ meaning 'who benefits?' to suggest the beneficiary here would be Wall Street.
Weinhaus, who also helped establish Athena Bitcoin, a global Bitcoin ATM company, believes that regulatory “overreach” will stifle the innovative potential of cryptocurrencies in the U.S., predicting it 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."
Refuting the SEC's allegations, Binance contends that the U.S. regulator lacks a comprehensive understanding of how to govern cryptocurrency.
"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," the company said.
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 legal tender.
