Is SEC's crackdown on crypto exchanges warranted? Here's what Zerodha's Nithin Kamath says

economictimes.indiatimes.com:

SEC) had last week sued Coinbase and Binance, two of the world's largest crypto exchanges for allegedly breaching its rules.Nithin Kamath, the co-founder and CEO of India's leading broker Zerodha, said the SEC action is warranted to protect the interest of retail investors. Kamath said the public markets are prone to some scams even with a number of regulations and batted for regulatory oversight in the crypto markets too. «Even with all the regulations, some promoters scam retail investors in the public markets. If random crypto tokens can raise money from the public, there has to be regulatory oversight. Otherwise, retail investors will be taken advantage of. Current SEC action was maybe warranted,» he said.

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Coinbase has been targeted by US regulators who allege the cryptocurrency platform is operating as an unregistered securities platform and brokerage service. In its complaint filed in Manhattan federal court, the SEC said Coinbase has since at least 2019 made billions of dollars by operating as a middleman on crypto transactions while evading disclosure requirements meant to protect investors. The SEC said Coinbase traded at least 13 crypto assets that are securities that should have been registered, including tokens such as Solana, Cardano. and Polygon. The lawsuit from the SEC comes only a day after it filed charges against Binance, the world's largest crypto exchange, and its founder Changpeng