• The U.S. Securities and Exchange Commission (SEC) delivered a triple whammy to crypto on Wednesday: they sent Coinbase a “Wells Notice”, filed a lawsuit against Justin Sun, and targeted celebrities who promoted TRON-related blockchain projects.
• The specifics of the SEC’s charges against Coinbase are still unknown, but many believe it is related to their staking service and token listings.
• This news caused some disruption in the market with Coinbase’s stock dropping as much as 20% before paring back some of the losses.

SEC Takes Aim at High-Profile Targets

The U.S. Securities and Exchange Commission (SEC) took aim at high-profile targets including Coinbase, Justin Sun and Lindsey Lohan on Wednesday, showing that it doesn’t have the resources to effectively police the crypto industry.

Coinbase Receives Wells Notice

Coinbase received a “Wells Notice” from the SEC which indicated that they may be violating securities laws related to their staking service and token listings. This notice serves as an alarm bell for Coinbase indicating that legal action may be taken against them by the SEC if they don’t comply. As a result of this news, Coinbases stock dropped as much as 20%, though it has since pared back some of those losses.

Justin Sun Sued By SEC

Separately, the SEC also filed a lawsuit against Tron founder Justin Sun for allegedly promoting fraudulent investments related to TRON-related blockchain projects without disclosing his financial interests in them or registering them with the agency first. Additionally, more than half-a-dozen celebrities were targeted by the SEC for promotion these same investments without making proper disclosures about them either.

Crypto Industry Not Being Effectively Policed

By taking aim at high profile targets such as Justin Sun and Lindsey Lohan, the SEC showed it does not have enough resources to effectively police all aspects of the cryptocurrency industry all at once. This could mean that there are other issues within crypto being overlooked by regulators due to lack of manpower or resources available to them at this time.

Conclusion

In conclusion, while Wednesday’s actions from the SEC show they are starting to take steps towards regulating cryptocurrencies more closely, these actions also indicate that they still do not have enough resources available to police every aspect of crypto all at once – something investors should keep in mind when considering investing in digital assets going forward