SEC’s Next Crypto Targets Revealed: Insights from Dev Deutch Bank Berenberg!

  • The SEC is expected to target stablecoins and decentralized finance (DeFi) in its regulatory crackdown.
  • Berenberg, a major German bank, predicts that the SEC will focus on bringing stablecoins and DeFi protocols into compliance.
  • This regulatory action could limit the capabilities of regulated exchanges and lenders, while providing an alternative for users seeking decentralization.

SEC’s Next Target: Stablecoins and DeFi, Says Berenberg

A recent research report by Berenberg suggests that the US Securities and Exchange Commission (SEC) will continue its stringent approach towards the cryptocurrency industry by targeting stablecoins and DeFi. The bank highlights that after focusing on cryptocurrencies and crypto service providers, the SEC’s next move could be to regulate stablecoins and DeFi protocols to ensure compliance. Mark Palmer, an analyst at Berenberg, stated, “They could target stablecoins, which are the lifeblood of decentralized finance.”

Berenberg specifically mentions Tether (USDT) and USD Coin (USDC) as potential targets. In the scenario where USDC is targeted, it could significantly impact the revenue of Coinbase, the largest cryptocurrency exchange in the US. According to data, 23% of Coinbase’s Q1 2023 revenue, amounting to $199 million, came from USDC staking. Berenberg previously predicted that the SEC would take enforcement action against Coinbase, potentially affecting its USDC staking revenue.

It is worth noting that the SEC has already filed a lawsuit against Coinbase, alleging violations of US securities laws.

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