The SEC sues Binance and Coinbase, and labels dozens of coins as securities. Both the crypto exchanges paused services while promising legal battles in courts.
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Binance, Coinbase head to court, and the SEC labels 67 crypto-securities: Hodler’s Digest, June 4-10
The SEC sues Binance and Coinbase, and labels dozens of coins as securities. Both the crypto exchanges paused services while promising legal battles in courts.
Binance, Coinbase head to court, and the SEC labels 67 crypto-securities: Hodler’s Digest, June 4-10
Top Stories This Week
U.S. SEC sues Binance and Coinbase amidst crypto crackdown
Binance and Coinbase have been targeted in a new round of lawsuits by the U.S. Securities and Exchange Commission (SEC) against crypto businesses. The regulator pressed 13 charges against Binance on June 5, including those involving unregistered offerings and sales of tokens, and failing to register as an exchange or broker-dealer. The commission also went after Coinbase on similar grounds, alleging that popular cryptocurrencies offered by the exchange are securities. Trading volume across the major decentralized exchanges jumped 444% in the hours following the legal actions. In the six months after FTX’s bankruptcy, SEC crypto-related enforcement actions rose 183%.
SEC lawsuits: 67 cryptocurrencies are now seen as securities by the SEC
The total number of cryptocurrencies the United States securities regulator has labeled as a “security” has now reached an estimated 67, after adding a few more to the list in its lawsuit against crypto exchanges Binance and Coinbase. In its case against Binance, the SEC introduced 10 cryptocurrencies into the securities classification, while it named 13 cryptocurrencies in its Coinbase suit. The “security” label now applies to over $100 billion worth of the market, or around 10% of the $1.09 trillion total crypto market capitalization.
Coinbase CEO Brian Armstrong sold company shares the day before the SEC lawsuit against the exchange. The transaction caused a minor stir in the Twitter cryptoverse, as Armstrong avoided a sharp loss by doing so. SEC records show that Armstrong sold 29,730 shares of the company on June 5, the day before the SEC suit. Armstrong has been selling Coinbase stock regularly since November under a 10b5-1 plan adopted in August, which determines the timing and size of transactions in advance. The net worths of Armstrong and Binance CEO Changpeng Zhao have suffered heavy blows due to the suits. Within 30 hours, Armstrong’s net worth plummeted by $289 million and Zhao’s by $1.33 billion.
Binance.US suspends USD deposits, warns of fiat withdrawal pause
Binance.US has suspended U.S. dollar deposits and announced an upcoming pause for fiat withdrawals as early as June 13. According to the exchange, it was forced to take action amid “extremely aggressive and intimidating tactics” from American regulators. Trading, staking, deposits and withdrawals in crypto remain fully operational. Binance.US also delisted eight Bitcoin pairs and two BUSD pairs while noting that OTC Trading Portal services were paused.
June 2023 has proven to be a tumultuous month for cryptocurrency exchanges in America. Crypto.com will no longer serve institutional clients in the United States after announcing the suspension of the service starting June 21. The Singapore-based cryptocurrency exchange cited limited demand from institutional customers as a primary reason for the move, which has been exacerbated by testing prevailing market conditions. American retail users still have access to cryptocurrency derivatives trading and the UpDown Options offering.
Nigeria regulator halts Binance operations: Report
According to Nigeria's securities regulator, Binance is neither registered nor regulated in the country, making its operations illegal.
EU needs further efforts to implement crypto regulations: Btc. x CEO
The CEO of Btc. x mentioned the possibility of governments deeming the MiCA framework inadequate, leading to a two-sided power dynamic.
EU needs further efforts to implement crypto regulations: Btc. x CEO
The CEO of Btc. x mentioned the possibility of governments deeming the MiCA framework inadequate, leading to a two-sided power dynamic.
Bitcoin price avoids 3-month lows as crypto dive liquidates $390M
Bitcoin (BTC) challenged three-month lows into June 10 as altcoins in particular felt the heat from United States regulatory pressure.
BTC/USD 1-hour candle chart on Bitstamp. Source: TradingViewAltcoin bloodbath as exchanges reshape landscape
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting $25,483 on the day, down over $1,200 from the previous day’s high.
While showing weakness, Bitcoin was spared the fate of major altcoins, which reacted strongly to delisting that accompanied U.S. legal action against major exchanges.
Trading app Robinhood announced that it would remove support for several cryptocurrencies named in the lawsuit against Binance and Coinbase by the U.S. Securities and Exchange Commission (SEC).
These subsequently hemorrhaged value, with both Cardano (ADA) and Solana (SOL) down nearly 25% in 24 hours at the time of writing.
Bitcoin price avoids 3-month lows as crypto dive liquidates $390M
Bitcoin and altcoins feel the pressure of the week's regulatory bombshells, with BTC price action steadying below the key 200-week moving average.
Bitcoin price avoids 3-month lows as crypto dive liquidates $390M
Bitcoin (BTC) challenged three-month lows into June 10 as altcoins in particular felt the heat from United States regulatory pressure.
BTC/USD 1-hour candle chart on Bitstamp. Source: TradingViewAltcoin bloodbath as exchanges reshape landscape
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting $25,483 on the day, down over $1,200 from the previous day’s high.
While showing weakness, Bitcoin was spared the fate of major altcoins, which reacted strongly to delisting that accompanied U.S. legal action against major exchanges.
Trading app Robinhood announced that it would remove support for several cryptocurrencies named in the lawsuit against Binance and Coinbase by the U.S. Securities and Exchange Commission (SEC).
These subsequently hemorrhaged value, with both Cardano (ADA) and Solana (SOL) down nearly 25% in 24 hours at the time of writing.
Nigeria to tax crypto, digital assets 10% on capital gains — Experts react
The legislation aims to enhance fiscal transparency, boost revenue and recognize cryptocurrencies as legitimate assets.
Nigeria to tax crypto, digital assets 10% on capital gains — Experts react
The legislation aims to enhance fiscal transparency, boost revenue and recognize cryptocurrencies as legitimate assets.
Ooki DAO to shut down after 'precedent setting' court battle with CFTC
The CFTC highlighted that “critically, in a precedent-setting decision” the Ooki DAO was held in court as “‘person’ under the Commodity Exchange Act.”
Scammers steal nearly $1M after hijacking 8+ prominent crypto twitter accounts
The group of scammers have recently taken over accounts belonging to the founder of Pudgy Penguins, the CTO of OpenAI and even crypto hater Peter Schiff.
SEC charges against Binance and Coinbase are terrible for DeFi
The SEC’s charges against Binance and Coinbase could have far-reaching consequences for decentralized finance.
US Justice Department charges two men in Mt. Gox Hack
The Justice Department claims Alexey Bilyuchenko and Aleksandr Verner took control of a Mt. Gox server and stole 647,000 Bitcoin from the exchange.
Real-World Asset protocols outperform DeFi blue-chips due to tokenization wave
Traditional finance companies are boosting their engagement with Ethereum-based real-world asset protocols, resulting in RWAs outperforming DeFi blue chips.
Real-world asset protocols outperform DeFi blue chips due to tokenization wave
Real-world asset (RWA) protocols have become a hot trend within decentralized finance (DeFi) circles.
An RWA protocol is a decentralized application that allows entities to tokenize and trade real-world assets. These assets range from stocks and government bonds to real estate and commodities. They are also known as asset tokenization protocols.
DeFi provides certain advantages over TradFi by making the smart contracts transparent and enabling a wide degree of financialization of assets by making them divisible, transferable and tradable on decentralized platforms.
The top uncollateralized lending protocols for institutions, TrueFi and Maple, have increased by 26.6% and 117.8%, respectively, in 2023. Centrifuge, a real-world asset tokenization platform, has surged by 32% year to date.
In comparison, the gains recorded by the DeFi pulse index in the same period were 13%. Glassnode’s index of DeFi blue-chip tokens has lost 7% since the year’s start.
DeFi volumes surge 444% after Binance, Coinbase lawsuits: Finance Redefined
The top-100 DeFi tokens by market capitalization had a bearish week as the total value locked in these protocols fell below $50 billion again.
Price analysis 6/9: BTC, ETH, BNB, XRP, ADA, DOGE, SOL, MATIC, LTC, DOT
Bitcoin (BTC) remains well above the crucial support at $25,250, indicating that market participants have shrugged off the news of the lawsuit by the United States Securities and Exchange Commission (SEC) against Binance and Coinbase. When markets do not stay lower for long after negative news, it is a sign that traders are looking to buy the dips rather than panic and dump their holdings.
ARK Invest CEO Cathie Wood has been buying the dip in crypto-related stocks since the SEC unleashed its recent crypto regulatory action. First Wood purchased $21 million worth of Coinbase stock on June 6 and followed that up with a purchase of Block Inc. shares worth $19.9 million between June 7 and 8.
Daily cryptocurrency market performance. Source: Coin360The resilience of the cryptocurrency space is supported by a risk on sentiment. The U.S. equities markets are on a roll with the S&P 500 rising above 4,300 on June 9, the first such instance since August 2022.
Can bulls sustain the recovery in the cryptocurrency markets or will higher levels bring out the bears in large numbers? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin turned down from the moving averages on June 7 but a minor positive is that the bulls did not allow the price to slump below $26,125. This suggests that lower levels are attracting buyers.
Price analysis 6/9: BTC, ETH, BNB, XRP, ADA, DOGE, SOL, MATIC, LTC, DOT
Stock markets are showing strength, and selling by crypto traders has taken a pause. Is this a sign that Bitcoin and altcoins are about to reverse course?