Binance.US Halts USD Deposits Amid SEC Pressure: Analyzing Effects on Crypto Markets

Artistic style: photorealistic, Light setting: evening skyline, Descriptive terms: tense, dramatic, Mood: apprehensive, Scene: a courtroom with a gavel coming down, Binance and SEC text floating above a digital world map, crypto coins and traders watching anxiously in the background.

Binance.US has recently taken the decision to halt USD deposits, and customers have been advised to withdraw all US dollar funds by June 13th. However, the dollar withdrawal service is currently not working, and all USD trading pairs are scheduled to be removed next week. According to a statement released on their Twitter account, Binance.US believes that the SEC has been employing aggressive tactics in its pursuit of the American digital asset industry, which has put pressure on their banking partners.

In light of these events, Binance.US is suspending USD deposits in an effort to protect its customers and platform. Customers have been advised to take appropriate action regarding their USD balances. Though there could be delays in withdrawing USD funds, the exchange’s status page does not yet indicate when withdrawal services will resume, leaving its clients in a state of uncertainty.

Already facing a lawsuit from the US Securities and Exchange Commission (SEC), the government is now attempting to freeze the assets of Binance.US. Many in the crypto industry accuse the SEC and its chairman Gary Gensler of wanting to shut down the US crypto market. Interestingly, Binance claims that Gensler tried to obtain a job at the exchange in 2019 and should therefore recuse himself from the lawsuit.

Following the announcement of the lawsuit, net flows at the exchange have turned negative, as evidenced by data from crypto analysts Hansen. Previously positive at $78 million for Binance.US 24 hours after the SEC sued the exchange, net flow has now turned negative to -$123.6 million following the SEC’s request for a temporary restraining order to freeze Binance.US assets.

SEC documents detail how Binance entities have moved as much as $50 billion of dollar funds using the services of Silvergate Bank and Signature Bank. Additionally, former Binance.US CEO Brian Brooks has revealed in court documents that Changpeng Zhao (“CZ”) was the CEO of BAM Trading – the entity that holds Binance.US – contradicting CZ’s previous claims that Binance.US and the wider Binance group were separate organizations run independently.

While the bitcoin price remains relatively unchanged at $26,437, the SEC lawsuit has sparked the creation of meme coins, including $​SEC and $​GENSLR. So far, the crypto market has reacted calmly to the news, with some traders rationalizing the SEC’s move as a US problem, even if the US is still the leading market for crypto.

Wall Street Memes ($​WSM), a one-million-strong retail trading community rooted in the meme stock craze of the Covid pandemic era, has raised over $5.5 million during its ongoing presale. This demonstrates the continued bullish sentiment within the crypto sector, as it aims to bring the fight for the little guy to the crypto market despite the SEC’s alleged war on crypto.

Source: Cryptonews

Sponsored ad