Major cryptocurrencies targeted as unregistered securities in U.S. Securities and Exchange Commission (SEC) lawsuits against Binance and Coinbase are witnessing sharp declines. BNB, the Binance Smart Chain’s native token, has dropped to a five-month low, whereas Algorand’s ALGO and Solana’s SOL have also experienced significant losses. On the other hand, Bitcoin appears to be a safe haven on a relative basis, maintaining its value near a three-month low at $26,400.
Despite facing lawsuits from state and federal regulators, crypto exchange Coinbase plans to continue operating its crypto staking service. CEO Brian Armstrong’s reassurance at the Bloomberg Invest Conference highlighted that the staking service accounts for around 3% of the company’s overall net revenue. The SEC filed lawsuits against Coinbase alleging various violations, including the sale of unregistered securities. A coalition of ten states led by the Alabama Securities Commission raised similar allegations against the company’s staking program.
In light of the SEC suit against Binance, an interesting revelation has come to light. As a private citizen in 2019, current SEC Chair Gary Gensler offered to serve as an advisor to Binance, according to the exchange’s attorneys. This development raises questions about Gensler’s potential recusal from the case. The attorneys revealed that Binance CEO Changpeng “CZ” Zhao and Gensler had an in-person meeting in Japan, where they discussed the BNB token and the possibility of Binance opening an exchange in the U.S. At that time, Gensler acknowledged the regulatory uncertainty surrounding the rapidly growing cryptocurrency industry.
The exchange’s attorneys claimed that Zhao perceived Gensler as being comfortable serving as an informal advisor, a role that Gensler himself offered. This relationship could potentially influence the ongoing legal proceedings and underscores the blurred lines between the cryptocurrency industry and regulators.
The recent events bring to light the challenges faced by the cryptocurrency market as it navigates the complex regulatory landscape in the United States. With major players like Binance and Coinbase under scrutiny by regulatory authorities, the future of the cryptocurrency industry and its stakeholders hangs in the balance.
On the technical analysis front, Bitcoin’s price slipped to a former resistance-turned-support level at $25,300 earlier this week. The move, called a throwback, refers to a counter-trend movement bringing prices down to the breakout price. Following the completion of a throwback, prices typically rise, according to technical analysis theory. The coming days will reveal whether Bitcoin’s price trajectory adheres to this pattern and the overall impact of the regulatory actions on the cryptocurrency market.
Source: Coindesk
