# The SEC Wants to Quash the Advance of Crypto *Agency sues Coinbase and Binance in one week* By [Author Allen Taylor](https://paragraph.com/@tayloredcontent) · 2023-06-07 sec, web3, binance, coinbase, gary gensler, digital currencies, ada, matic, sol, xrp, mana, sand, axs, gaming tokens, nft, ethereum, erc-6551, erc-721, bitcoin, digital wallets, metaverse, cent, tacit, cent pages, aurory, solcial, artificial intelligence, blockchain, crypto, defi, paypal, liberland, dao, write3, web3 writers, twitter, hive, mirror, publish0x, hyphadao, folklore, ark --- **If you like what I'm doing, you can collect this newsletter edition.** The U.S. Securities and Exchange Commission (SEC) has formally [sued Binance](https://www.sec.gov/news/press-release/2023-101) and Coinbase, accusing both companies of [violating securities laws](https://www.theguardian.com/technology/2023/jun/06/sec-accuses-coinbase-cryptocurrency-exchange-of-breaking-us-regulations). _Coinbase is on the record as saying it is prepared to defend itself against SEC allegations_ [_all the way to the Supreme Court_](https://www.livemint.com/market/cryptocurrency/coinbase-threatens-to-take-sec-fight-to-supreme-court-if-needed-11686098416082.html)_, and can demonstrate that it has asked for SEC guidance. If that can be proven in court, Coinbase could save the rest of the crypto industry further headaches by forcing a court to require Congress to pass meaningful legislation before the SEC goes after other crypto businesses. But we're looking at a 2-3 year process as the agencies battle it out._ SEC Chair Gary Gensler says fiat currencies are the [only digital currencies necessary](https://decrypt.co/143595/crypto-industry-is-built-on-non-compliance-says-sec-chair-gary-gensler). _This reveals the real reason for the war against crypto. As a spokesman for the Fed, Gensler is essentially on the record for saying the financial establishment doesn't welcome competition._ The SEC has gone so far as to attempt to freeze all of Binance's U.S. assets held [anywhere in the world](https://www.cnbc.com/2023/06/06/sec-asks-for-emergency-order-to-freeze-binance-us-assets-anywhere-in-the-world.html). _The fact that assets are held someone other than in the U.S. means they should not be considered "U.S." assets._ Among the list of altcoins the SEC considers securities, listed in its complaint against Coinbase, include [ADA, MATIC, and SOL](https://cryptopotato.com/ripples-xrp-not-named-a-security-in-the-secs-case-against-coinbase/). _Curiously, XRP is not one of them._ In its case again Binance, the SEC [considers gaming tokens](https://nftnow.com/features/the-impact-of-secs-gaming-tokens-classification-on-web3/) MANA, SAND, and AXS to be securities. _In other words, if a token contains a utility that the U.S. dollar does not have, it's a security in the eyes of Gensler. I hope this man's job is on the chopping block during the next election._ Ethereum has a [new NFT protocol](https://eips.ethereum.org/EIPS/eip-6551?utm_source=forefront.beehiiv.com&utm_medium=newsletter&utm_campaign=consumer-social-financialization). _ERC-6551s sound pretty cool on the face of it. Essentially, your ERC-721s can each have their own smart contract account, which allows them to hold assets of their own. I can't wait to see what creative uses come from these. Here are 3 use cases I can think of right away:_ 1. **_NFT Asset Portfolio_** _- Imagine your NFT as an asset portfolio in and of itself, holding a bucket of digital assets bound to its own wallet._ 2. **_Meme Collection_** _- Got a set of memes you want to hold together in one collection? Turn them into an NFT where each meme is an NFT and the collection itself is its own NFT._ 3. **_Novel Characters_** _\- Let' say you want to write a novel but you don't want to sell an NFT for each character in the novel separately. Instead, you create an ERC-6651 to hold the ERC-721 for every character in the novel and sell them as a set._ You can now collect Louis Vuitton's [trunk as an NFT](https://cointelegraph.com/news/louis-vuitton-embraces-web3-launches-its-iconic-trunk-as-a-digital-collectible). Legal futurist Artem Afian argues that bitcoin wallets should have [rights of their own](https://bitcoinmagazine.com/legal/why-bitcoin-wallets-should-have-legal-rights). _I can foresee a day when Web3 wallets could be extended the same set of rights that fictitious persons (aka corporations) have._ How to create [value in the metaverse](https://www.brookings.edu/research/metaverse-economics-part-1-creating-value-in-the-metaverse/). **_An incredible read._** Cent, the company behind Valuables and Cent Pages, has [bought Tacit](https://venturebeat.com/games/cent-acquires-tacit-to-make-it-easy-to-collect-nfts/) and they're issuing a [merger token](https://news.cent.co/nft/10120) to celebrate. ![](https://storage.googleapis.com/papyrus_images/11fcef4dc7155eb9e99c717c9b78077a.png) Image source: Cent Aurory and Solcial are collaborating, celebrating with a [solcial token airdrop](https://blog.solcial.io/english/aurory-solcial-collaboration-giveaway/) and an Aurory NFT raffle. _Does anyone care about airdrops anymore?_ The metaverse, AI, and blockchain technology are the [trifecta of Web3](https://coingeek.com/the-web3-trifecta-robert-rice-talks-about-combining-ai-metaverse-and-blockchain/). A PayPal survey reveals 80 percent of metaverse users [also use crypto](https://blockworks.co/news/metaverse-users-use-crypto). _Why would anyone think that's surprising?_ There's [more to Web3](https://www.fastcompany.com/90904889/web3-unlocks-new-possibilities-beyond-finance) than decentralized finance. _Of course, we knew that. It's not all about the crypto._ One man wants to own an NFT sports franchise by [purchasing it with NFTs](https://www.khou.com/article/sports/sports-extra-extra-houston-reboot-city/285-ee5c4ad8-cff7-488b-be95-787effe73dca). _Well, if we're going this far, why not turn ownership of the franchise into an NFT?_ Liberland is advancing as the world's first [decentralized autonomous government](https://cryptotvplus.com/2023/06/liberland-the-worlds-first-decentralized-autonomous-government/). How DAO laws are being used to [shield individuals](https://www.blockchainandthelaw.com/2023/05/part-ii-with-new-dao-law-on-the-books-utah-joins-race-with-wyoming-and-tennessee-to-become-u-s-crypto-capital/?utm_source=mondaq&utm_medium=syndication&utm_term=Technology&utm_content=articleoriginal&utm_campaign=article) from legal liability. A French music artist is giving fans [ownership of a song launch](https://decrypt.co/143542/nft-artist-agoria-give-fans-ownership-over-upcoming-album-launch). AI music tools are doing some really [spooky things](https://www.coindesk.com/web3/2023/06/06/how-ai-is-transforming-music-creation-in-web3/) in Web3. All About Me ------------ I'm proud to announce that I have become the [first sponsor](https://twitter.com/gregyounger/status/1665723021884022786) for the Write3 newsletter. _Greg Younger writes puts some amazing things into his newsletter every week. I recommend subscribing._ [![User Avatar](https://pbs.twimg.com/profile_images/1484567893656416262/aXljuvof_normal.jpg)](https://twitter.com/gregyounger) [Greg Younger | The Write3 Guy](https://twitter.com/gregyounger) [@gregyounger](https://twitter.com/gregyounger) [![Twitter Logo](https://paragraph.xyz/editor/twitter/logo.png)](https://twitter.com/gregyounger/status/1665723021884022786) ![🚨](https://twemoji.maxcdn.com/v/14.0.2/72x72/1f6a8.png) Big news, Write3 Family! ![🚨](https://twemoji.maxcdn.com/v/14.0.2/72x72/1f6a8.png) Stoked to announce my first sponsor for the Write3 Newsletter! Please welcome Allen Taylor and his book "Web3 Social"! Happy to mint this 1/1 to commemorate the event! ![](https://pbs.twimg.com/media/Fx3VR34XoAEighU.jpg) [![Like Icon](https://paragraph.xyz/editor/twitter/heart.png) 20](https://twitter.com/gregyounger/status/1665723021884022786)[ 10:11 AM • Jun 5, 2023 ](https://twitter.com/gregyounger/status/1665723021884022786) Yesterday, I participated in the [Web3 Writers Hour](https://twitter.com/Allen_Taylor/status/1666158625989984268) on Twitter spaces. _This was a fun nerdy event involving several Web3 writers and myself. We talked about superhero parody, which writers from the past would be Web3 writers today, and where we see/hope Web3 writing goes from here._ Web3 Social Media Sightings --------------------------- Good reads from some of my favorite Web3 social media platforms. ### Hive @nonameslefttouse is [officially retiring](https://hive.blog/life/@nonameslefttouse/im-officially-retiring-from-writing-hive-posts) from writing posts about Hive. _I'm not real familiar with this Hive user, but I followed him after this post. There are too many people on Hive talking about Hive anyway. I'd be willing to bet Hive has the largest and most consistent echo chamber in Web3._ @philnews.xyz celebrates [Hive's mention](https://hive.blog/hive-141359/@philnews.xyz/hive-featured-philippines-oldest-newspaper-millions-readers) in a Manila Bulletin article. _Manila Bulletin is one of the Philippines' largest and longest-running newspapers. Methinks a decentralized congratulations is in order._ @arcange writes some of the best posts on [Hive statistics](https://hive.blog/hive-133987/@arcange/hive-finance-20230605-en). _These are a must-read if you want to know what's going on at Hive._ @pnc discusses 10 new features of HyphaDAO's [Organization-in-a-Box](https://hive.blog/thiagore/@pnc/10-new-features-to-expect-from-hyphadao-s-organization-in-a-box-beta-launch) beta launch. _I'm not sure what an organization in a box is, but it sounds pretty cool. Too bad it's on the EOS blockchain._ @infotariq discusses the best practices for building an online community for [luxury fashion brands](https://hive.blog/marketing/@infotariq/5-best-practices-for-building). @jemmanuel discusses the forces that [distanced him](https://hive.blog/ocd/@jemmanuel/between-dreams-and-responsibilities-exploring-the-forces-that-temporarily-distanced-me-from-hive-and-other-web3-platforms) from Web3 platforms. ### Mirror Folklore is launching a [community mind called Ark](https://folklore.mirror.xyz/OiCZVCw4LcIDck_2KLufkFtaWDL_zP3plpTNXaD3Saw). The Savvy Travel Historian has made her [first Mirror post](https://mirror.xyz/savvytravelhistorian.eth/2NuLCM8tffjDWQFi__ewXGwFRi_nzTtGlwHMmakI8T4). _And, man, is it a good one!_ ### Publish0x SimpleSwap showcases the [5 stages of a crypto project](https://www.publish0x.com/simpleswap-blog/5-stages-of-a-crypto-project-how-and-when-to-join-xzgowgz). _Web3 Writings is a decentralized newsletter published Wednesdays and Fridays by award-winning journalist and best-selling author Allen Taylor._ Show Me Some Love! ------------------ If you like this post, show me some love. 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