Key Points:
After learning of the lawsuit, shares fell about 12% from their Friday close. According to TradingView, they have now recovered marginally and are now down 9.05% at $58.7.
Bitcoin fell by more than 5%, sliding below $26,000 for the first time since mid-March. Stocks in MicroStrategy, Marathon Digital Holdings, and Riot Platforms all fell significantly.
According to the SEC, Binance and linked entities deceived clients and routed cash to a separate investment fund controlled by the company’s CEO, Changpeng Zhao.
The SEC has already investigated Coinbase‘s digital asset listings, staking-as-a-service, institutional trading, and wallet services. In response, the corporation has sued the SEC in the hopes of compelling the regulatory body to develop guidelines for the regulation of digital assets.
According to Berenberg analyst Mark Palmer, the SEC case against Binance might be a foreshadowing of what is to come for rival crypto exchange Coinbase in the future.
“We estimate that at least 37% of COIN’s net revenue would be at risk if the SEC were to target the company’s crypto token trading and staking operations,” noted Palmer.
The crypto market is bracing for further turmoil as the SEC continues its quest for transparency and compliance with securities regulations.
Additionally, according to the complaint, Binance deceived consumers by claiming to have risk measures in place to oversee manipulative trading. That compromised the cryptocurrency market’s integrity.
With the consequences of the FTX exchange’s collapse, US officials have increased their monitoring of cryptocurrency trading and the platforms that support such activity.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
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Harold
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