WASHINGTON (Legal Newsline) - As the world's largest cryptocurrency exchange Binance pushes back against Securities and Exchange Commission (SEC) claims it is operating in the U.S. unlawfully, an industry expert says the agency's action is sure to benefit Wall Street.
“If the United States is worried about the acceptance of blockchain technology as a threat to the dollar’s dominance, it makes sense to prosecute specious claims,” said Edward “Coach” Weinhaus, a St. Louis-based attorney and bitcoin entrepreneur who taught the first cryptocurrency course at the University of Chicago's Booth School of Business.
“Focus on what Mert (Nobel Prize winner and late University of Chicago Booth School professor, Merton Miller) taught - 'cui bono?' Wall Street, of course,” Weinhaus said.
The Latin phrase "cui bono" means "who stands to gain?"
Weinhaus, who co-founded global bitcoin ATM company Athena Bitcoin, said regulatory "overreach" serves to stifle cryptocurrency innovation in the U.S., which he says will continue offshore.
“Regulatory overreach drives up costs for the accused actors - innocent or otherwise," he said. "The crypto industry will not be immune to governmental whims simply because it is a force for financial inclusion."
Binance denied the SEC's allegations, arguing the U.S. agency doesn't understand how to regulate cryptocurrency.
"Any allegations that user assets on the Binance.US platform have ever been at risk are simply wrong," the company said in a statement. "The Commission has determined to regulate with the blunt weapons of enforcement and litigation rather than the thoughtful, nuanced approach demanded by this dynamic and complex technology"
"The SEC’s actions undermine America’s role as a global hub for financial innovation and leadership. Digital asset laws remain largely undeveloped in much of the world, and regulation by enforcement is not the best path forward," the company said.
Weinhaus is currently conducting doctoral research at Washington University School of Law on the topic of crypto’s challenge to monetary sovereignty. His company, Athena, implemented El Salvador’s transition to bitcoin as legal tender.