SEC Escalates Pressure on Crypto: Lawsuits Target Binance and Coinbase
The US Securities and Exchange Commission (SEC) has filed lawsuits against two of the largest cryptocurrency exchanges which are called Binance and Coinbase . The news of these legal actions had an immediate impact on the market with Bitcoin initially experiencing a sharp decline and then only to recover and surpass $27,000 . But as the SEC’s pressure continued Bitcoin dropped to as low as $26,100 .
Bitcoin Traders Unfazed by Regulatory Pressure
Experts Bitcoin traders closely watched the situation and their observations reveal a notable resistance among traders in the face of SEC pressures . According to a report from Coindesk this lack of unrest is an indication of investors anticipating and factoring in the regulatory actions beforehand .
A cryptocurrency trader Christopher NewHouse has made a comment stating that “Traders are unlikely to be concerned about the SEC’s pressures . Regulatory concerns have been a topic of discussion since the beginning of 2023 and the market has already anticipated and priced in these actions .”
Impact on Alternative Cryptocurrencies
However the SEC’s lawsuits appear to be affecting alternative cryptocurrencies commonly known as altcoins to a greater extent . Griffin Ardern who is a trader at Blofin which is a crypto management firm, suggested that the reason for this could be the existing approval of Bitcoin (BTC) and Ethereum (ETH) by the Commodity Futures Trading Commission (CFTC) and their long-standing presence on regulated exchanges like CME .
Ardern explained “The SEC’s lawsuits primarily target altcoins while BTC and ETH have relatively limited exposure . This explains why the impact on BTC and ETH has been somewhat contained .”
The Lawsuits: Identifying Securities
In the lawsuit against Coinbase the SEC mentioned several cryptocurrencies as potential securities some of which include Solana (SOL), Cardano (ADA), Polygon (MATIC), Filecoin (FIL), Sandbox (SAND), Axie Infinity (AXS), NEXO, FLOW and DASH .
Similarly the SEC’s lawsuit against Binance claims that BNB, BUSD, SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS and COTI are securities .
As the legal battles advance the outcome of these lawsuits will have implications for the wider cryptocurrency market and regulatory landscape . Traders and investors will closely monitor the proceedings and seek clarity on how regulations will shape the future of cryptocurrencies both within the US and globally .
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