Binance, Coinbase head to court; the SEC labels 67 crypto-securities

By Investor Empires On Jun 11, 2023

US SEC sues Binance and Coinbase amid crypto crackdown

Binance and Coinbase have been targeted in a new round of lawsuits by the US Securities and Exchange Commission (SEC) against the crypto business. The regulator filed 13 charges against Binance on June 5, including those involving unregistered offerings, token sales, and failure to register as an exchange or broker-dealer. The commission also went after Coinbase on similar grounds, claiming that popular cryptocurrencies offered by the exchange are securities. Trading volume across major decentralized exchanges jumped 444% in the hours following the legal action. In the six months following the FTX bankruptcy, the SEC’s cryptocurrency-related enforcement actions rose 183%.

SEC Lawsuits: 67 Cryptocurrencies Now Viewed as Securities by the SEC

The total number of cryptocurrencies designated as a “safety” by the US securities regulator has reached an estimated 67, after a few were added to the list in the lawsuit against cryptocurrency exchanges Binance and Coinbase. In its case against Binance, the SEC included 10 cryptocurrencies in its securities classification, while it named 13 cryptocurrencies in its Coinbase lawsuit. The “safety” designation now applies to more than $100 billion of the market, or about 10% of the total $1.09 trillion cryptocurrency market cap.

The Coinbase CEO’s stock sale may not have been planned the day before the SEC lawsuit

Coinbase CEO Brian Armstrong sold shares of the company the day before the SEC filed a lawsuit against the exchange. The deal caused a slight stir on the covers of cryptocurrency Twitter, as Armstrong avoided a sharp loss by doing so. SEC records show Armstrong sold 29,730 shares in the company on June 5, the day before the SEC sued. Armstrong has been selling Coinbase shares regularly since November under the 10b5-1 plan approved in August, which predetermines the timing and volume of transactions. The fortunes of Armstrong and Binance CEO Changpeng Zhao have taken a severe hit due to the allowances. Within 30 hours, Armstrong’s net worth decreased by $289 million, and Zhao’s net worth decreased by $1.33 billion.

Binance.US Suspends USD Deposits and Warns of Stopping Cash Withdrawals

Binance.US suspended USD deposits and announced a halt to cash withdrawals as early as June 13th. According to the exchange, it was forced to take action amid “highly aggressive and intimidating tactics” from US regulators. Trading, deposits and withdrawals in cryptocurrencies remain fully operational. Binance.US also removed eight Bitcoin pairs and two BUSD pairs noting that their OTC Trading Portal services have been 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 US after announcing the suspension of service effective June 21. The Singapore-based cryptocurrency exchange cited limited demand from institutional clients as the main reason for the move, which was exacerbated by testing prevailing market conditions. US retail users can still access cryptocurrency derivatives trading and view UpDown options.

Winners and losers

At the end of the week, Bitcoin (BTC) in $26,449ether (ETH) in $1,837 And XRP in $0.53. The total market value of $1.1 trillion according to CoinMarketCap.

Among the top 100 cryptocurrencies, Terra Classic was the three biggest gainers for the week (far) By 17.73%, XRP (XRP) at 2.40% and stack (STX) by 2.39%.

The three biggest altcoin losers this week are Sui (SUI) at -22.08%, Conflux (CFX) at -20.97%, and illuminated (FLR) by 20.57%.

For more information on cryptocurrency prices, be sure to read Cointelegraph’s market analysis.

Most memorable quotes

“The SEC does not make the law. In fact, this approach to regulation is unacceptable, but it is what we have come to expect from the SEC and its anti-crypto stance.”

Christine SmithCEO, Blockchain Association

“We are proud to represent the industry in court to finally gain some clarity on crypto rules.”

Brian ArmstrongCoinbase CEO

“We believe that blockchain technology and Web3 have huge potential to transform a wide range of industries and prepare them for the future.”

Lars RensingCEO of Protokol Corporation

“(Gary Gensler) opened this year, in 2023, with all this enforcement action; I think it’s like CYA (cover your ass) to me.”

French hillrepresentative of the United States

“When legislation does not keep pace with new technology in place, the United States loses its competitive advantage over other countries.”

Ryan WhitePresident of Polygon Labs

“We believe that capital market information will be completely different in a few years, and it is our duty to lead the revolution.”

Itai Ben-ZeevCEO of the Tel Aviv Stock Exchange

predict the week

Bitcoin price could rise by 60% if the “textbook” chart pattern confirms the trader

Bitcoin could be on a 60% uptrend if the long-term chart feature remains intact. Popular trader Mikybull Crypto has put encouraging signs on the BTC/USD weekly chart, arguing that it shows that the pair is completing and retesting the now inverted head and shoulders pattern.

Bitcoin is issuing an inverted head and shoulders textbook flash on the weekly TF. Price is currently retesting the neckline after the breakout, Mikybull Crypto explained, before adding that “If the range between the head and neckline is usually a sprint, we would expect a 60% rally other on bitcoin.

This “sprint” of 60% would put BTC/USD at around $40,000.

FUD week

US Bitcoin Supply Down Over 10% In The Last Year – Glassnode

bitcoin Give up the US during the 2022 bear market, new research from on-chain analytics firm Glassnode. Recent analysis of bitcoin supply shows a global migration away from the United States and towards Asia. Since mid-2022, the volume of supply held and traded by US entities has decreased by more than 10%. At the same time, the share of Europe remained approximately equal, which led to a redistribution from West to East. The year-over-year supply change shows that the US share started declining in March 2021 but is accelerating from May this year.

Gary Gensler: The Cryptocurrency Market Is Like The Stock Market In The 1920s, Full Of “Scammers”

During a speech this week, the head of the US Securities and Exchange Commission, Gary Gensler, compared the current crypto market to the stock market of the 1920s, saying it was filled with “hikers,” “scammers,” and “Ponzi schemes.” He said that just as Congress cleaned up the stock market by enacting securities laws in the past, the current SEC can also clean up the cryptocurrency market by enforcing these laws. Gensler has come under fire in the crypto industry, especially since the SEC filed lawsuits against cryptocurrency exchanges Binance and Coinbase. Critics say he has an overly expansive view of the SEC’s regulatory power and drives innovation outside the United States

GameStop CEO Matt Furlong was fired months after the crypto payment was canceled

GameStop has fired its CEO Matt Furlong, the executive responsible for launching the company’s push for NFTs. The news came along with GameStop’s first-quarter earnings call, which saw earnings per share fall short of market expectations by more than 133%. The company gave no reason for Furlong’s termination. He will be succeeded by billionaire investor Ryan Cohen. GameStop launched its NFT marketplace in June 2022 with nearly $2 million in sales in its first 24 hours of operation. However, in August, the daily sales volume fell below $4,000, down 99.8% from its opening day.

Editorial Board

Cointelegraph writers and reporters contributed to this article.