Top news this week
US SEC Sues Binance and Coinbase Amid Crypto Crackdown
Binance and Coinbase have been the subject of a new round of lawsuits by the US Securities and Exchange Commission (SEC) against crypto companies. the regulator filed 13 charges against Binance on June 5, including those involving unregistered offerings and token sales, and not registering as an exchange or stockbroker. The commission also went after Coinbase on similar grounds, claiming that the popular cryptocurrencies offered by the exchange are securities. Trading volume on major decentralized exchanges jumped 444% in hours following legal actions. In the six months after the FTX bankruptcy, SEC cryptocurrency-related transactions compliance actions increased 183%.
SEC Lawsuits: 67 Cryptocurrencies Are Now Viewed As Securities By The SEC
The total number of cryptocurrencies from the United States securities regulator has labeled as a "value" has now reached an estimate of 67, after adding a few more to the list in its lawsuit against cryptocurrency exchanges Binance and Coinbase. In its case against Binancethe SEC introduced 10 cryptocurrencies into the securities classification, while naming 13 cryptocurrencies in its coin base costume. The “security” label now applies to more than $100 billion in the market, or around 10% of the total crypto market capitalization of $1.09 trillion.
Coinbase CEO's Stock Sale Likely Wasn't Planned for a Day Before the SEC Lawsuit
Brian Armstrong, CEO of Coinbase sold company stock the day before the SEC lawsuit against the swap. The transaction caused a bit of a stir in the Twitter cryptoverse, as Armstrong avoided a heavy loss by doing so. SEC records show that Armstrong sold 29,730 shares of the company on June 5, the day before the SEC's lawsuit. Armstrong has been selling Coinbase shares regularly since November under a 10b5-1 plan adopted in August, which determines the timing and size of transactions in advance. Armstrong and Binance CEO Changpeng Zhao's net worth they have suffered severe blows because of the suits. Within 30 hours, Armstrong's net worth plummeted by $289 million and Zhao's by $1.33 billion.
Binance.US Suspends USD Deposits, Warns of Fiat Withdrawal Pause
Binance.US has US dollar deposits suspended and announced an upcoming pause for trustee withdrawals starting June 13. According to the exchange, he was forced to take action amid "extremely aggressive and intimidation tactics" by US regulators. Cryptocurrency trading, staking, deposits and withdrawals remain fully operational. Binance.US also removed eight Bitcoin pairs and two BUSD pairs and noted that the OTC Trading Portal services were on hiatus.
June 2023 has proven to be a tumultuous month for cryptocurrency exchanges in the United States. Crypto.com no longer serve institutional clients in the United States after announcing the suspension of the service as of June 21. The Singapore-based cryptocurrency exchange cited limited demand from institutional clients as the main reason for the move, which has been exacerbated by testing prevailing market conditions. US retail users still have access to cryptocurrency derivatives trading and the UpDown Options offering.
Winners and losers
At the end of the week, Bitcoin (BTC) I sat down $26,449Ether (ETH) in $1,837 and XRP in $0.53. Total market capitalization is $1.1 trillion, according to CoinMarketCap.
Among the top 100 cryptocurrencies, the top three altcoin gainers of the week are Terra Classic (FAR) at 17.73%, XRP (XRP) at 2.40% and batteries (STX) at 2.39%.
The top three altcoin losers of the week are Sui (SUI) at -22.08%, conflux (CFX) to -20.97%, and Flare (FLR) at 20.57%.
For more information on cryptocurrency prices, be sure to read Cointelegraph Market Analysis.
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most memorable quotes
“The SEC doesn't make the law. Indeed, this approach to regulation is unacceptable, but it is what we expect from the SEC and its anti-crypto stance."
christian smithBlockchain Association CEO
"We are proud to represent the industry in court to finally get some clarity on cryptocurrency rules."
brayan armstrongCoinbase CEO
“We believe that blockchain and Web3 technology have enormous potential to transform a wide range of industries and prepare them for the future.”
lars rensingProtocol CEO
“[Gary Gensler] it opened this year, in 2023, with all these execution actions; I think it looks like CYA [cover your ass] me."
french hillUnited States Representative
"When regulation doesn't meet new technology where it is, the US loses its competitive advantage over other countries."
ryan wyattPresident of Polygon Labs
“We believe that capital market information will be completely different in a few years, and it is our job to lead the revolution.”
Ittai Ben ZeevMoreCEO of the Tel Aviv Stock Exchange
prediction of the week
Bitcoin Price May Rise 60% If 'Textbook' Chart Pattern Confirms - Trader
Bitcoin may be in line for 60% up whether a long-term chart feature remains intact. Popular pseudonymous trader Mikybull Crypto marked encouraging signs on the BTC/USD weekly chart, arguing that it shows the pair completes and is now retesting an inverse head and shoulders pattern.
“Bitcoin is showing a textbook reverse head and shoulders in 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 the neckline is usually the sprint, we anticipate another 60% rally in BTC.”
That 60% sprint would put BTC/USD at around $40,000.
FUD of the week
Bitcoin Supply in the US Dropped More Than 10% in the Last Year — Glassnode
Bitcoin left the United States during the 2022 bear market, new research from on-chain analytics firm Glassnode. The latest Bitcoin supply analysis shows a global migration out of the US and into Asia. Since mid-2022, the amount of supply held and traded by US entities has decreased by more than 10%. At the same time, Europe's share has remained more or less the same, resulting in a redistribution from west to east. The year-over-year change in supply shows that the US share started to decline in March 2021 but accelerated from May of this year.
Gary Gensler: The Crypto Market Is Like The Stock Market Of The 1920s, Full Of 'Scammers'
During a speech this week, US SEC Chairman Gary Gensler compared today's crypto market to the stock market of the 1920s, saying it is full of "hucksters", "con artists" and "Ponzi schemes". Just as Congress cleaned up the stock market by enacting securities laws in the past, the current SEC can also clean up the crypto market by enforcing these laws, she argued. Gensler has been heavily criticized within the crypto industry, especially since the SEC filed lawsuits against cryptocurrency exchanges Binance and Coinbase. Critics say he takes too expansive a view of the SEC's regulatory authority and is driving innovation outside of the US
GameStop Fires CEO Matt Furlong Months After Ditching Crypto Push
game stop has fired its CEO Matt Furlong, the executive responsible for launching the company's push towards NFTs. The news came alongside GameStop's first-quarter earnings call, which saw earnings per share missing market expectations by more than 133%. The company did not provide a reason for Furlong's firing. He will be succeeded by billionaire investor Ryan Cohen. game stop launched its NFT marketplace in June 2022 with nearly $2 million in sales in the first 24 hours of operation. However, in August, daily sales volumes fell to less than $4,000, a 99.8% drop from opening day.
Best Cointelegraph Features
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