The US Securities and Exchange Commission (SEC) lawsuit against BINANCE and COINBASE has caused a lot of people to pull their investments from CEX (centralised exchange) and move to DEX (decentralised exchange). The SEC is looking forward to it.
SEC's Chances Against DEX
DEX are not safe from Scam or litigation. DeFi Protocol Bancor was sued by investors in the Western District of Texas under the Securities Act of 1933 and the Exchange Act of 1934 for defrauding by its product, this is also an open door for the SEC.
SEC's Limitations Against DEX
The federal courts do not uphold state laws in such cases, for example the federal court for the Eastern District of New York to recently dismiss a lawsuit brought against the DEX startup "PoolTogether" by Joseph Kent (a former aide to Elizabeth Warren). This is closed door for the SEC.
Thoughts
SEC crackdown against CEX has made people move to DEX . This has harmed industry, but in a way it is changing the direction of the business. People, Business, and SEC are playing an important part for the next step of development.
