There’s absolutely no need to beat around the bush, so let’s kick it off directly… the United States Securities and Exchange Commission sued Binance. That’s right, the world’s largest cryptocurrency exchange is under siege. Binance, Binance US, and Changpeng Zhao are all named in the lawsuit, as the SEC is out for blood.
The Commission has asked the court to freeze the assets of Binance US and has also issued a summons for CZ. Since he’s not a US citizen, though, reports have it that he doesn’t have to be physically present but can attend remotely.
The markets tumbled, needless to say. Bitcoin plummeted toward $25K, while Binance Coin suffered even more. The entire cryptocurrency community was taken by surprise by this sudden move.
And if that was all, perhaps things might have looked somewhat okay. But that was far from everything. The SEC is truly out for blood. The very next day, it filed against Coinbase.
The two largest cryptocurrency exchanges, one of which is a publicly-traded company in the United States, are currently being sued by the Securities and Exchange Commission for violating securities laws. The market took a beating but was able to recover to a point where Bitcoin currently trades at $26,600, down 1.6% in the past seven days.
In the lawsuit against Coinbase, the SEC alleged that multiple cryptocurrencies are securities, naming ADA, SOL, MATIC, and others directly. As a result, ADA is down 15%, MATIC – 14%, and SOL – 10%. Expectedly, BNB is down about 15% as well.
Amid all this, the only major cryptocurrency that’s holding well and is trading in the green for the past seven days is Ripple’s XRP. Perhaps one thing to do with it is the fact that the SEC’s claim against Coinbase didn’t name XRP a security.
Both Binance and Coinbase will be fighting the SEC claims, and the industry is anxiously awaiting the outcome. It’s safe to say that this week was amongst the most intense ones in a while for the crypto market. Stay tuned for more updates as the situation unfolds.
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