The SEC has filed lawsuits against the two largest exchanges in the cryptocurrency market in the past two days.
While the lawsuits filed by the SEC shocked the cryptocurrency market, statements from both the stock market and the SEC followed. However, cryptocurrencies also experienced declines.
What Could Happen in the Cryptocurrency Industry After the SEC’s Lawsuits?
The SEC rocked the cryptocurrency market yesterday with its lawsuit against Binance and CEO CZ. In addition, statements from industry stakeholders came one after another.
He claims that Binance has provided customers with false information and misdirected capital. It is also suing Coinbase for violating securities laws.
Moody’s Head of Digital Assets Strategy highlighted significant potential, noting that the regulatory environment could reshape fees for digital assets.
Following these news, the share value of rival exchange Coinbase and the price of Bitcoin fell. Binance CEO Changpeng Zhao criticized the Securities and Exchange Commission (SEC) case on Twitter, stating that it was a preview of what could happen in the future. The SEC lawsuit alleges that Binance provided false information to customers and misdirected capital. If the SEC wins the case, Binance CEO Zhao and the company could be banned from doing business in the US.
However, the decisions that will come out of the lawsuits may re-determine the course in the crypto money industry, since both exchanges are large.
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