Centralized crypto exchanges have experienced a significant drop in trading volumes, reaching their lowest levels in over four years. This is due to increased regulatory pressure from US regulators and lawmakers. The combined spot and derivatives trading volume fell by 15.7% in May, marking the second consecutive month of dwindling crypto trading activity.

Binance and Binance.US have been accused by the SEC of redirecting more than $12 billion in customer assets to entities controlled by Binance founder Changpeng Zhao between 2019 and 2021. The SEC has requested a temporary freeze on assets at Binance.US and wants to freeze Binance and Zhao's assets, but has only filed a temporary restraining order on Binance.US's assets.

According to Bloomberg, Ark Invest CEO Cathie Wood said in an interview that Coinbase will benefit from Binance legal problems in the U.S. because it will eliminate its main competitor. Wood said, "Coinbase has not been accused of any criminal activity. The definition of securities and pledges are two issues that both Coinbase and According face, but most of the other issues regarding According are not relevant to Coinbase."

According to CNBC, Lawyers representing Binance and its founder Changpeng Zhao have claimed that SEC Chair Gary Gensler offered to serve as an advisor to the exchange in 2019. The allegations were made in documents filed by Gibson & Dunn and Latham & Watkins on June 7. Gensler reportedly had several conversations with Binance executives, including Zhao, in March 2019.

Despite the Securities and Exchange Commission's (SEC) lawsuit against Binance, the world's largest crypto exchange by trading volume, customers seem to be unaffected. Binance experienced outflows of 10,000 Bitcoin (BTC), the largest withdrawal total of 2023, but this appears less significant when viewed on a zoomed-out time chart.

The SEC has filed lawsuits against two major crypto companies, Binance and Coinbase, with serious allegations against both. The allegations against Binance are more damning, directly mentioning CEO Changpeng Zhao and claiming that the company operated through a "web of deception" and commingled customer funds.

Bitcoin's recent correction presents a buying opportunity for bulls, according to experienced trader Tone Vays. He attributes the dip to news that the SEC is suing Binance and its CEO, causing investors to panic. Vays notes that Bitcoin's daily chart looks bearish as it trades below a key moving average, but he expects a rebound in the coming days and doesn't anticipate the price falling below $25,000.

Renowned billionaire investor and founder of Galaxy Digital, Mike Novogratz, predicts further legal battles by the US Securities and Exchange Commission (SEC) against crypto businesses, with protracted legal processes. Novogratz commented that the ongoing cases against Coinbase and Binance probably won't be litigated for a few months, making it difficult to determine what to do.

The crypto industry has faced a tough 48 hours, with the SEC filing lawsuits against Binance and Coinbase for allegedly violating securities laws. The SEC also sought to freeze assets related to Binance.US. The lack of policy and regulatory clarity in the US surrounding crypto has added to the frustration. However, figures in the crypto space have minted Coinbase's Stand with Crypto NFT to show their commitment to crypto and demand regulatory clarity. The NFT is free to mint, and platform mint fees will be donated to support crypto advocacy efforts.

Robinhood is reviewing the SEC's analysis of its cryptocurrency offerings to determine if any actions need to be taken, following the SEC's recent action against two major digital asset trading platforms. The brokerage firm currently offers users access to a limited list of 18 different tokens, some of which have been classified by the SEC as unregistered securities.