Coinbase’s market share hit its highest level since January 2023 in June despite the U.S. Securities and Exchange Commission’s lawsuit against the company, Kaiko says data.
According to the chart below, Coinbase has consistently controlled approximately 50% of trading activity on regulated exchanges in the United States year-to-date. However, its market dominance saw a rapid rise in June, culminating at 64%, as the SEC filed charges against it and Binance for violations of federal securities law.
Meanwhile, other US platforms like Kraken and Bitstamp also increased their market share during this period.
Traditional financial institutions still in business with Coinbase
Despite the SEC lawsuit, several traditional financial institutions, including BlackRock, Fidelity, and ARK Investments, have signed a custody sharing agreement with Coinbase for their spot Bitcoin exchange-traded fund (ETF) depository.
BlackRock, the world’s largest asset manager, has chosen Coinbase Custody as the custodian of its trust’s BTC holdings.
Ryan Selkis, founder of Messari suggested that these partnerships underscore Coinbase’s legitimacy as an American financial institution, signaling a growing acceptance of cryptocurrency businesses in the traditional financial sector
Pro-XRP lawyer John Deaton substantiated Selkis’ view, adding that more than 2,000 Coinbase users have “signed up to potentially be heard as amici curiaein the SEC’s lawsuit against the crypto firm.
An amicus brief, commonly referred to as a “friend of the court” brief, is a written submission made by a person or organization who is not directly involved as a plaintiff or defendant in a court case, but who holds a substantial interest in the case. The purpose of an amicus brief is to provide the court with additional perspectives and opinions that can potentially affect the final court decision.
Binance’s US Market Share Evaporates
The SEC lawsuit appears to have had a severe impact on Binance US, with its market share dropping to less than 1% from a 20% peak recorded in April.
Binance US, transitioning to a crypto-only platform, faced significant liquidity issues after its banking partners halted their USD payment channels, posing challenges to its operations and affecting its market position .
On June 21, BTC surged to $138,000 due to its shallow market depth. Previously, the flagship digital asset traded at a 3% discount on the platform compared to other competing exchanges.
Coinbase’s market share is on the rise despite SEC actions appearing first on CryptoSlate.
