Imagine your daily commute to work, uninterrupted by traffic lights or stop signs, allowing you to sail smoothly. Suddenly, a new red stop sign disrupts your route, turning a main intersection into a four-way stop overnight. That evening, a letter from local law enforcement shocks you with a hefty retroactive fine for every time you passed the spot where the new sign stands today.
Absurd as it seems, this analogy encapsulates the United States Securities and Exchange Commission’s approach in its lawsuits against Coinbase (NASDAQ:COIN) and Binance.
Trevor Ward is the director of content marketing at Bitwave. A graduate of Brigham Young University, he previously co-founded and served as the CEO of Multisig Media.