The SEC has filed a lawsuit against Binance and Coinbase for allegedly operating as securities exchanges without registering with the SEC. Binance is facing additional charges of diverting customer funds to another business. The SEC has requested a federal judge to freeze Binance's US platform assets. Both exchanges deny the allegations and plan to defend themselves in court. SEC chief Gary Gensler has consistently stressed the need for cryptocurrency industry regulation, considering most cryptocurrencies as securities. Coinbase and Binance argue that they are designed to operate outside the traditional financial system. Binance has suspended USD deposits and warned of potential fiat withdrawal channel pauses. The SEC has previously taken action against other crypto companies, such as Kraken, Genesis, and Gemini. Approximately 12% of the US population is estimated to own crypto investments