- The SEC launched lawsuits against Binance and Coinbase.
- Decentralized exchanges like Uniswap and dYdX could see more volumes.
- Decentralized liquid staking platforms like Lido DAO could also benefit.
The Securities and Exchange Commission (SEC) has gone to war with cryptocurrencies as it filed lawsuits against Coinbase and Binance, two of the biggest companies in the industry. Together with the lawsuit on Ripple, these are the biggest suits in the industry ever. Despite this, several companies stand to benefit from these lawsuits.
OKX
OKX is the second-biggest exchange in the world after Binance. The company operates under the radar and its name is not well-known. Data compiled buy CoinMarketCap shows that the company handled over $1.6 billion in the past 24 hours. Further data by DeFi Llama shows that the company has over $9.86 billion in assets.
OKX stands to benefit from this crisis because it does not have exposure to the United States. As such, it could attract more customers from around the world.
To be clear, I believe that Binance and Coinbase will continue thriving despite these lawsuits. A good example of this is the Ripple Labs vs SEC case. Ripple has continued doing well in the past few years despite the suit. Historically, these lawsuits take several years to complete and in many cases, they end with a settlement.
Lido DAO
One of the SEC claims against Binance and Coinbase is that the two companies provides staking solutions to their customers. As I wrote here, staking allows people to earn a return by depositing their coins to an exchange. In its Coinbase lawsuit, the SEC wrote that:
“In other parts of our securities markets, these functions are separate. Coinbase’s alleged failures deprive investors of critical protections, including rulebooks that prevent fraud and manipulation, proper disclosure, safeguards against conflicts of interest, and routine inspection by the SEC.”
Lido DAO is a company that provide liquid staking solutions. Unlike Coinbase, it is a decentralized company that is controlled by a decentralized autonomous organization (DAO). While it is possible to regulate such a company, I believe that the process will be much difficult.
Uniswap
Uniswap is another company that is set to benefit as the SEC sues Binance and Coinbase. Like Lido DAO, this is a decentralized exchange that provides services around the world. People link to the site using their wallet address.
Therefore, I believe that Uniswap will continue thriving in the coming years. Data shows that its 24-hour volume on Ethereum jumped by 76% to over $851 million. In Arbitrum, it jumped by 135% to over $347 million.
Other DEX companies that could benefit are dYdX, Kine Protocol, Curve, DODO, and Apollox among others.
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