Top stories this week
US SEC sues Binance and Coinbase in crypto crackdown
Binance and Coinbase have been the target of a new round of lawsuits filed by the U.S. Securities and Exchange Commission (SEC) against crypto firms. The regulator brought 13 charges against Binance on June 5, including those involving unregistered token offerings and sales, and failure to register as an exchange or broker. The commission also sued Coinbase on similar grounds, alleging that popular cryptocurrencies offered by the exchange are securities. Trading volume on major decentralized exchanges jumped 444% in the hours following the legal actions. In the six months since the FTX bankruptcy, SEC crypto-related enforcement actions have increased by 183%.
SEC lawsuits: 67 cryptocurrencies are now considered securities by the SEC
The total number of cryptocurrencies that the US securities regulator has called “safe” has now reached around 67, after adding a few more to the list in its lawsuit against crypto exchanges Binance and Coinbase. In its case against Binance, the SEC introduced 10 cryptocurrencies in the securities classification, while it named 13 cryptocurrencies in its Coinbase lawsuit. The “safe” label now applies to over $100 billion of the market, or about 10% of the total crypto market capitalization of $1.09 trillion.
Coinbase CEO’s Stock Sale Probably Wasn’t Planned One Day Before SEC Lawsuit
Coinbase CEO Brian Armstrong sold shares in the company the day before the SEC lawsuit against the exchange. The transaction caused a slight stir in the Twitter cryptoverse, as Armstrong avoided a steep loss in doing so. SEC filings show Armstrong sold 29,730 shares of the company on June 5, the day before the SEC lawsuit. Armstrong has been selling Coinbase stock regularly since November under a 10b5-1 plan adopted in August, which predetermines the timing and size of trades. The net worth of Armstrong and Binance CEO Changpeng Zhao has taken a heavy hit due to the lawsuits. Within 30 hours, Armstrong’s net worth dropped by $289 million and Zhao’s by $1.33 billion.
Binance.US suspends USD deposits and warns of pausing fiat withdrawals
Binance.US has suspended US dollar deposits and announced an upcoming pause for fiat withdrawals starting June 13. According to the exchange, it was forced to take action amid “extremely aggressive and intimidating tactics” by US regulators. Crypto trading, staking, deposits and withdrawals remain fully operational. Binance.US also delisted eight Bitcoin pairs and two BUSD pairs while noting that OTC trading portal services have been suspended.
June 2023 turned out to be a tumultuous month for cryptocurrency exchanges in America. Crypto.com will no longer serve institutional customers in the United States after announcing the suspension of the service from June 21. The Singapore-based cryptocurrency exchange cited limited institutional client demand as the main reason for the move, which was 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 weekend, Bitcoin (BTC) is at $26,449Ether (ETH) To $1,837 And XRP To $0.53. The total market capitalization is $1.1 trillion, according at CoinMarketCap.
Among the 100 biggest cryptocurrencies, the top three altcoin gainers of the week are Terra Classic (LUCN) at 17.73%, XRP (XRP) at 2.40% and batteries (STX) at 2.39%.
The top three altcoin losers of the week are Sui (SU) at -22.08%, Conflux (CFX) at -20.97%, and Flare (FLR) at 20.57%.
For more information on crypto prices, be sure to read Cointelegraph’s market analysis.
Read also
Features
Saving the Planet Could Be Blockchain’s Killer App
Features
Investing in Blockchain Gaming: Why VCs Bet Big
Most Memorable Quotes
“The SEC does not make the law. Indeed, this approach to regulation is unacceptable, but that is what we expect from the SEC and its anti-crypto stance.
Christine SmithBlockchain Association CEO
“We are proud to represent the industry in court to finally get clarity on crypto rules.”
Brian 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 RensingCEO of Protokol
“(Gary Gensler) opened this year, in 2023, with all these enforcement actions; I think that sounds like CYA (cover your ass) to me.
French hillUnited States representative
“When regulation doesn’t meet new technology where it is, the United States 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 duty to lead the revolution.”
Ittai Ben ZeevTel Aviv Stock Exchange CEO
Prediction of the week
Bitcoin Price May Gain 60% If ‘Manual’ Chart Pattern Confirms – Trader
Bitcoin may be in line for a 60% rally if a long-term chart feature remains intact. Popular pseudonymous trader Mikybull Crypto has reported encouraging signs on the BTC/USD weekly chart, arguing that it shows the pair is ending and is now testing a reverse head and shoulders pattern again.
“Bitcoin is showing a head and shoulders reverse textbook on the weekly TF. Price is currently retesting the neckline after the breakout,” explained Mikybull Crypto, before adding that “if the head to neck range is generally the sprint, we expect another 60% rally on BTC.
This 60% “sprint” would put BTC/USD at around $40,000.
FUD of the week
US Bitcoin Supply Has Fallen Over 10% Over the Past Year — Glassnode
Gary Gensler: The crypto market is like the stock market of the 1920s, full of ‘fraudsters’
During a speech this week, US SEC Chairman Gary Gensler compared today’s crypto market to the stock market of the 1920s, saying it was teeming with “thugs”, “fraudsters” and “Ponzi schemes”. Just as Congress has cleaned up the stock market by enacting securities laws in the past, the current SEC can also clean up the crypto market by enforcing those laws, he argued. Gensler has been heavily criticized within the crypto industry, especially since the SEC filed lawsuits against crypto exchanges Binance and Coinbase. Critics say he takes too broad a view of SEC regulator and pushes innovation out of the US
GameStop fires CEO Matt Furlong months after removing crypto push
GameStop has fired its CEO Matt Furlong, the executive responsible for launching the company’s push into NFTs. The news came alongside GameStop’s first quarter earnings call, which saw earnings per share beat market expectations by more than 133%. The company did not provide a reason for Furlong’s dismissal. He will be replaced by billionaire investor Ryan Cohen. GameStop launched its NFT Marketplace in June 2022 with nearly $2 million in sales in the first 24 hours of operation. By August, however, daily sales volumes had fallen to less than $4,000, a 99.8% drop from opening day.
Best Crypto Features
Tornado Cash 2.0: The Race to Build Safe and Legal Coin Mixers
Projects are racing to create legal coin mixers that maintain privacy while revealing just enough data to stay on the right side of the law.
6 questions to Thiago Cesar from Transfero
Transfero’s Thiago Cesar says that when he started buying Bitcoin in 2012, he knew he had incredible potential to “internationalize money”.
Layah Heilpern worked as a reporter for a Chinese state television network before falling “down the rabbit hole” of cryptocurrency.
Subscribe
Blockchain’s most engaging reads. Delivered once a week.
