Crypto Markets Show Maturity Amid SEC Actions Against Binance and Coinbase
The recent actions taken by the SEC against Binance and Coinbase have caused volatility in the cryptocurrency market, but it has not collapsed, indicating maturity in the space. Traders withdrew 12,600 Bitcoin from exchanges, showing that they did not panic.
EU’s New Crypto Framework Could Give It an Edge Over US, As SEC Flexes Its Muscles
As the SEC cracks down on Binance and Coinbase, the European Union is introducing a new crypto framework that provides greater clarity for blockchain innovators. The EU's approach of regulating first and then observing the market response could give it an edge over the U.S. Some believe the EU's new Markets in Crypto Assets (MiCA) law makes it well-positioned to compete with the U.S., where big crypto players complain about regulation by enforcement. The MiCA law is said to better match what crypto is for, and some businesses are considering shifting to Europe because of the new framework.
Cumberland Withdrew 8,250 $ETH ($15M) From Binance and 4,500 $ETH ($8M) From Coinbase Again
Cumberland withdrew 8,250 $ETH ($15M) from #Binance and 4,500 $ETH ($8M) from Coinbase again.
Coinbase CEO Says Company Has a History of Transparency With SEC After Being Sued
Coinbase CEO Brian Armstrong stated in an interview with CNBC that the crypto exchange has always been transparent with the US Securities and Exchange Commission (SEC), following the SEC's recent lawsuit against the company for failing to register as an exchange. Armstrong expressed disappointment that the SEC had allowed Coinbase to become a public company only to later change their stance.
SEC’s Lawsuits Against Binance and Coinbase Could Lead to Massive Legal Fees and Threaten Crypto in the US
The SEC's lawsuits against Binance and Coinbase have caused concern about the competitiveness of the US digital asset ecosystem, but could result in massive legal fees for lawyers. A former senior trial counsel at the SEC predicts that legal fees for each exchange could exceed $100 million. If the exchanges lose the lawsuits and Congress fails to act, it could shut down crypto in the US as it exists today.
Bitcoin Bounces Back After Coinbase Sued by SEC for Violating Federal Securities Law
Bitcoin rebounded after dropping to a three-month low of less than $25,500 on Tuesday following news that Coinbase had been sued by the SEC for violating federal securities law. The lawsuit also listed 13 tokens which could be deemed as securities, including Cardano’s ADA and Polygon’s MATIC, both of which are down 5% over the past 24 hours.
Law firms involved in SEC cases against Coinbase and Binance
Several top law firms in the US have been hired to defend cryptocurrency exchanges Coinbase and Binance against lawsuits filed by the Securities and Exchange Commission (SEC). The SEC accused Coinbase of failing to register with the agency, while Binance was accused of inflating trading volumes.
Binance and Coinbase Experience Negative Outflows Following SEC Lawsuits
Binance and Coinbase are facing negative net outflows following lawsuits filed by the SEC. Within the first 24 hours of the announcement, the two exchanges collectively saw close to $600 million in negative net outflows. Binance's US arm experienced a net outflow of approximately $123 million across multiple chains, while Coinbase faced a net outflow of approximately $105 million.
Glassnode Reports Realized Losses Remain Low Despite SEC Lawsuit Against Binance and Coinbase
Glassnode, an on-chain analytics firm, has reported that despite the SEC's lawsuit against Binance and Coinbase resulting in volatile market moves and outflows, the magnitude of realized losses remains relatively low at $112 million. This suggests an increased degree of resilience among market participants.
US Court Grants Request to Freeze Assets of Binance Subsidiaries in the Country
On June 7th, a US court granted the SEC's motion to freeze the assets of Binance subsidiaries, BAM Management and BAM Trading, in the country to prevent the dissipation or withdrawal of these assets from the court's jurisdiction. The court ordered Binance to return all fiat currencies and cryptocurrencies held in Binance. us accounts to its customers within ten days. The case against Binance's US subsidiaries is under review, and the broader implications for Binance are yet to be determined.
