The Securities and Exchange Commission’s (SEC) lawsuits against Binance and Coinbase are likely to have long-lasting implications for cryptocurrency adoption in America, as they could stifle US dominance of the industry by discouraging innovation. The SEC is attempting to crack down on illicit activities such as fraud or market manipulation but their actions also threaten legal businesses which have been forced to halt operations and face crippling fines due to regulatory uncertainty.

The lawsuits could lead investors, exchanges and companies in the US and abroad avoiding crypto-related ventures altogether until clarity is achieved as it’s not feasible for them to operate without proper regulation or oversight of their activities. This would be disastrous since American innovation has been at the forefront when it comes to cryptocurrency, with companies such as Coinbase and Binance US leading global initiatives in bringing digital assets into mainstream adoption. Without these institutions’ involvement, US dominance over this space is sure to diminish significantly.

Legislation through regulatory enforcement (or unenforcement) violates both Articles I and II of the Constitution. When the Legislative branch abdicates its legal duties and hands them over to to the Executive, we all suffer.