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.
SEC Alleges Binance CEO Used Offshore Firm To Receive $11Bn in Client Assets
Binance CEO Changpeng Zhao's offshore trading company, Merit Peak, reportedly received about $11 billion of client assets through a Seychelles-based firm, according to a filing by the US Securities and Exchange Commission (SEC).
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.
Binance Claims Transparency and Denies Wrongdoing Amid SEC Litigation, Targets Differentiation from Troubled Exchange
On June 7th, Binance released a statement on its Chinese social channels with the hashtag #StrongTogether. The cryptocurrency exchange denied allegations of siphoning consumers' funds, collateralized borrowings, and making large donations to political candidates or entertainment and media entities. Although Binance did not name the exchange it was differentiating from, FTX has been accused of mismanaging consumers' assets and lending money to its sister hedge fund, Alameda Research. The SEC sued Binance on June 5th for allegedly selling unregistered securities to US users and operating an unregistered exchange in the United States.
SEC Lawsuit Against Binance and CEO Zhao Shifts Focus of Crypto Industry
The SEC's recent legal action against Binance and its CEO has highlighted the ongoing conflict between regulators and cryptocurrencies. The accusation of "commingling" customer funds is especially damaging, as the SEC may seize any opportunity to attack Binance. Meanwhile, Senator Elizabeth Warren has indicated that she will reintroduce legislation on digital asset money laundering, which aims to close loopholes and collaborate with international jurisdictions. The SEC's timing in taking action against Binance is ironic, as June has been the worst month for crypto investors, with daily average returns ranking last from 2021-2023.
SEC Alleges Binance Sent Nearly $20 Billion of Commingled Funds to Paxos Foreign Affiliate in 2021
According to a declaration by an Assistant Chief Accountant of the U.S. Securities and Exchange Commission (SEC), Binance allegedly sent nearly $20 billion of commingled funds to a foreign affiliate of stablecoin issuer Paxos in 2021.
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 Removes Hinman's Biography from Website Ahead of Email Release in Ripple Lawsuit
The SEC has removed a significant portion of William Hinman's biography from its website ahead of the release of his emails, which are crucial to the SEC vs. Ripple lawsuit. The biography previously contained important information about Hinman's professional background, but now only states that he served as the director of SEC's Corporation Finance division from May 2017 to December 2020. Some members of the XRP community speculate that the SEC is preparing to scapegoat Hinman. Meanwhile, there has been a surge in XRP address activity, which could potentially indicate a price increase.
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.
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.
