A recent event that has caught the attention of the crypto world is the summoning of Binance founder and CEO Changpeng Zhao by a district court in the US. This occurred just two days following the U.S. Securities and Exchange Commission (SEC) filing a lawsuit against the leading crypto exchange for allegations of violating federal securities laws. The lawsuit argues that Binance offered unregistered securities to the general public in the form of BNB token and Binance BUSD stablecoin.
This SEC crackdown on prominent crypto exchanges has undoubtedly generated some distress in the cryptocurrency market, resulting in top altcoins experiencing a decline of over 20% in the past week. Amidst this turmoil, Binance’s own token, BNB, also suffered, witnessing a 14% decrease within the same timeframe.
In addition to BNB, other tokens such as Pepe, Polygon, and Gala fell by over 13%. Meanwhile, more established tokens like Cardano, Solana, Polkadot, and XRP also encountered dipping prices following the SEC lawsuit. Furthermore, data reveals a 2.3% decline in the global cryptocurrency market cap, totaling $1.1tn, with Bitcoin dropping 2% to trade below $26,500, and Ethereum trading below $1,850.
These recent events may cause some to question the stability and security of cryptocurrencies in the market. However, as reported by Economic Times, Vikram Subburaj, CEO of Giottus Crypto Platform, contends that Bitcoin and Ethereum still maintain their levels as safer hedges for investors. With the anticipation of the US Fed deciding on interest rate hikes, more volatility can be expected in the cryptocurrency market in the upcoming week.
It has been revealed that two judges from the United States District Court will preside over crypto exchanges Coinbase and Binance’s SEC lawsuits. The SEC v Coinbase case will be overseen by Judge Jennifer H. Rearden in the Southern District of New York, while Judge Amy Berman Jackson will handle the SEC vs Binance case in the District of Columbia.
In conclusion, the recent events surrounding the SEC’s legal actions against prominent crypto exchanges have created a sense of unease in the market. The resulting decline in the value of some major altcoins has left many questioning the future and stability of the cryptocurrency market. However, there are those who still view top cryptocurrencies like Bitcoin and Ethereum as safer investment options amidst this volatility. The outcome of these lawsuits could potentially pave the way for future regulations and advancements in the sphere of crypto and blockchain technologies. As always, it is crucial for investors to conduct thorough market research before making any investments.
Source: Coingape
