There is a development like a bomb in the crypto money world. Accordingly, an SEC-oriented move by Binance regarding SHIB and other cryptocurrencies is on the agenda. Let’s have a look at the details.
War between stock market and SEC: SHIB is in danger
The latest move by the SEC to freeze BinanceUS assets is interesting. It could cause the exchange to stop trading for Bitcoin, Shiba Inu, and other assets indefinitely. The US Securities and Exchange Commission (SEC) has submitted a motion to temporarily freeze the assets of BinanceUS, the American subsidiary of the world’s largest exchange Binance. If approved by the court, this request will reveal an interesting result. It may lead to suspension of trading activities involving altcoins such as Bitcoin (BTC), Shiba Inu (SHIB).
The request came after the SEC’s accusations against the stock market and its CEO. Of course, all of these requests will affect SHIB and other altcoins. Accordingly, the SEC states that BinanceUS has misrepresented its trading regulations. There are also allegations of violations of securities laws. There are interesting developments in the details of the temporary restraining order (TRO) and the request for injunctive relief. Accordingly, it aims to prohibit BinanceUS from transferring funds or assets to Binance, CZ or any affiliate. The SEC argues that such transfers pose a threat of irreversible loss to investors.
BinanceUS Answers
BinanceUS was quick to respond on the matter. He states that his clients’ SHIB and other altcoin assets remain safe. He also emphasizes that the platform continues to work without any significant disruption. The exchange assured users that their deposit and withdrawal functions were not affected. The exchange expressed disappointment with the SEC’s filing. He also found it unnecessary. The company believes the agency’s goals could focus on gaining a strategic advantage in litigation rather than protecting client assets. BinanceUS also stressed that the US regulator did not point out any concerns regarding the security of client funds during its communications with the agency over the years.
https://twitter.com/BinanceUS/status/1666203325543374856
Binance US states that it has been in an extensive and continuous dialogue with the SEC in recent days. He also said he was taking proactive steps to address concerns. However, despite these efforts, the case came to the fore. The exchange says it plans to defend itself in court. These answers seem to have somewhat comforted SHIB and altcoin investors.
Troubled situation for SHIB and other altcoins
This move by the SEC will have significant implications for BinanceUS users who trade BTC, Shiba Inu (SHIB) and other assets. If the request is accepted, trading on the platform will be suspended indefinitely. Users will also be denied access to their funds. This will affect crypto investors the most. Because they own volatile crypto assets that are subject to price fluctuations. Industry leaders stress that this move only hurts investors the SEC wants to protect. The entire crypto community criticized the move. However, CZ explained that if the motion is passed, it will only affect BinanceUS, which caters to US citizens. He assured that client assets on the global Binance platform would remain secure regardless of the outcome of the transaction.
There are other altcoins
Cardano (ADA), Solana (SOL) and Polygon (MATIC) are in danger of being potentially wiped out from the Robinhood trading platform amid the recent legal proceedings from the US Securities and Exchange Commission (SEC). Therefore, there is not only SHIB in the target. Looking at Kriptokoin.com, Robinhood has announced that it can remove the tokens mentioned in the SEC’s lawsuit against two flagship cryptocurrency trading platforms, Binance and Coinbase. If a cryptocurrency is found to be a security and is not registered with the SEC, it is illegal for US-based exchanges like Robinhood to allow users to buy and sell them. Therefore, if the SEC lawsuit is successful, Robinhood may need to delist these coins in order to remain compliant with US securities laws.
The SEC claims that a number of widely traded cryptocurrencies, including Cardano, Solana, and Polygon, are properly unregistered securities. The online brokerage listed on the Nasdaq added support for the ADA cryptocurrency in September 2022. This move was part of a wider expansion in Robinhood’s crypto offerings that year. It originally started offering crypto in early 2018.
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