The regulator said last week it was suing Binance, Binance founder and CEO Changpeng “CZ” Zhao and the operating company for Binance.US on allegations of violating federal securities laws. A day later it sued rival exchange Coinbase (COIN) on similar charges.
The moves are “creating more urgency for U.S. lawmakers to come up with a comprehensive regulatory framework by this year,” JPMorgan said.
Until this happens, crypto activity will likely continue to move outside the U.S. and into decentralized entities. Crypto venture capital funding will also likely remain subdued, the bank said.
Source: SEC’s Binance, Coinbase Suits Highlight Need for U.S Crypto Regulatory Framework: JPMorgan
