SEC-induced panic saw $53 billion wiped from crypto market

Total crypto market capitalization dropped $53 billion as news from the US Securities and Exchange Commission (SEC) presentation against Binance arrived.

On June 5, the SEC charged Binance, its CEO Changpeng Zhao, and related entities with 13 violationsincluding wash trading, evading regulations, and offering unregistered securities.

Binance He said he was disappointed with the complaint and had always worked cooperatively with the regulator's inquiries. However, he challenged the enforcement action and claimed “vigorously” defend the charges.

A key component of Binance's defense centers on the SEC's alleged unwillingness to provide regulatory clarity. In addition, he stated that the company was a victim of the current “regulatory tug of war,” in which government agencies look for “claim jurisdictional grounds from other regulators.”

“Unfortunately, the SEC's refusal to productively engage with us is just another example of the Commission's knowing and misguided refusal to provide much-needed clarity and guidance to the digital asset industry.“

Crypto Markets Crash

The markets tanked on the news of the SEC filing against Binance.

On June 5 at 16:00 BST, just before the news broke, the total crypto market capitalization was valued at $1.13 trillion. As word spread, the resulting dump bottomed out at $1.08 trillion about an hour later, which equates to a reduction of $52.7 billion, or 4.7%.

A rebound followed to exceed $1.1 trillion. Since then, the market has traded flat as participants consider the seriousness of the situation, particularly the allegations that various third party tokens were named as securities in the SEC filing, including ADA, SOL and MATIC.

big winners and losers

Of the top 100, the biggest losers in the last 24 hours were Pepe, The Sandbox, and Sui, who lost 15.2%, 14.8%, and 12.7%, respectively. Sandbox was named as an unregistered security in the SEC filing.

Kava was the only top 100 token (excluding stablecoins) to remain green during the period, which grew by 9.6%.

Market leader Bitcoin suffered a top-to-trough loss of 5% to find support at $25,400. It has since reached a high of $25,890 but is shaping up to retest the $25,600 support.