US SEC’s next target is stablecoin and DeFi ─ German investment bank points out | CoinDesk JAPAN | CoinDesk Japan

Stablecoins and decentralized finance (DeFi) are likely to be the next targets in the U.S. Securities and Exchange Commission (SEC) crackdown on the cryptocurrency industry, according to German investment bank Berenberg. said in a survey report dated June 20.

In the future, the SEC may target stablecoins, including the top-capitalized Tether (USDT) and USD Coin (USDC), as well as DeFi protocols, according to the bank.

Earlier this month, the SEC announced it would be suing Binance, the operator of cryptocurrency exchange Binance.US, and its founder, Changpeng Zhao, AKA CZ, for allegedly violating federal securities laws. A day later, it sued rival exchange Coinbase on similar charges.

If the SEC seeks to reduce the likelihood that unregulated DeFi protocols will serve as a viable alternative to regulated financiers and exchanges, the It could “target any stablecoin that is currently on the market,” write analysts led by Mark Palmer.

Also, by targeting stablecoins, the SEC could undermine the DeFi ecosystem.

According to Berenberg, if USDC were targeted by US regulators, it could have a significant impact on Coinbase’s earnings. In the first quarter of 2023, the exchange generated $199 million in net income from interest on USDC reserves, or about 27% of the total.

Bitcoin (BTC) is likely to be the ultimate beneficiary of a string of crackdowns as the SEC has admitted it is a commodity rather than an unregistered security, the report says.

MicroStrategy’s stock also reflects the company’s focus on acquiring and holding bitcoin, as increased regulation is likely to push the U.S. crypto industry to focus more on bitcoin. , it appears to be in a good position to outperform.

｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
| Image: Nikhilesh De/CoinDesk
｜Original: Stablecoins, DeFi Likely to Be SEC’s Next Targets in US Crypto Crackdown: Berenberg