A recurring notion in the crypto community was that CFTC is the good cop to SEC’s bad cop. If only all crypto were under CFTC’s purview, everything would be awesome. I don’t know how this kind of action affects that belief.
The SEC has an order of magnitude more employees than the CFTC [1][2]. Crypto favored the latter not because it was a good cop, but because it is a weaker one.
[1] https://www.sec.gov/strategic-plan/about
[2] https://www.eeoc.gov/federal-sector/commodity-futures-tradin...
Weaker by comparison, not weak per se.
and the crypto space could use services that are not violating the CEA
But those too will be settled with fines and constructively financed and non-prison sentencing.
For context, look at Arthur Hayes with Bitmex. That got very dicey and was way smaller than Binance, big but smaller.