A crypto analyst says the SEC is playing a brutal game of chess against the world’s largest Bitcoin exchange, Binance. The crypto community is unsure of the possible outcomes of the SEC lawsuit. Binance USD (BUSD) lost nearly $10 billion in market share following the SEC action.
“SEC is playing a brutal game with this Bitcoin exchange!”
In a recent tweet, crypto analyst Adam Cochran alleges that the United States Securities and Exchange Commission (SEC) is playing ‘brutal 4D chess’ against Binance, the largest Bitcoin exchange. Cochran bases his argument on the SEC’s recent statement that BUSD, the Binance stablecoin, is an unregistered security. The analyst believes the SEC’s move was calculated and designed to force Binance to settle the matter or face the possibility of being discovered by a US agency.
According to Adam Cochran, if the Bitcoin exchange comes to an agreement, it will likely result in a penalty and exclusion from the industry, including the removal of market maker assets for its managers. In addition, the deal will block the deal to buy bankrupt crypto loan company Voyager. It will also set a ‘soft precedent’ for the SEC to leverage against other US-based exchanges.
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SEC suggesting Binance is unregistered securities exchange, on grounds BUSD is unregistered security is brutal 4D chess.
Binance has to settle, or else they'd be open to discovery by a US agency…
— Adam Cochran (adamscochran.eth) (@adamscochran) March 4, 2023
Meanwhile, as you follow on Kriptokoin.com, the SEC’s action has already caused a stir in the crypto community. Also, many market players speculated on possible outcomes for US-based crypto businesses and the crypto industry. However, crypto lawyer David Adler stands with the SEC with his comment. Referring to the explosion of the Celsius Network and Voyager, Adler said:
It seems that a bankruptcy is required to find out what the SEC’s position is on whether crypto is a security.
BUSD about to drop from Top 10
Also, data from market monitoring site CoinMarketCap shows that BUSD lost nearly $10 billion in market share following the SEC action. BUSD had a market capitalization of approximately $17 billion as of January 1, 2023. It was also ranked sixth among the cryptocurrencies with the largest market capitalization. Unfortunately, BUSD’s market share is about to drop out of the top ten as it falls below the market cap of the popular meme coin Dogecoin (DOGE).
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