But this ignores the big picture. In the first weeks of 2023, the control bodies have done a lot. On Jan. 3, a joint statement from US banking regulators warned the industry about crypto risks infiltrating the banking system.
Then came a $100 million deal with coin base Global over weak internal controls, a lawsuit against Gemini and the Winklevoss twins' Genesis broker for allegedly selling unregistered securities, and a $45 million settlement with lending platform Nexo (which has ceased US operations). . The subpoenas are flying.
The wheels of justice turn slowly: the denunciation of Gemini and Genesis came too late to customers fighting to recover $900 million in trapped money - but they are accelerating now. Regulators like the SEC feel justly vindicated by the events of the past year, in which a widespread loss of faith in cryptocurrencies failed to escalate into a broader economic crisis. the collapse of FTX It demonstrated the failings of the industry, but also the benefits of a strict regulatory line on exchanges, such as when the SEC intervened behind the scenes in 2021 to prevent Coinbase from launching its own crypto-lending product.
