This week’s headlines
US SEC sues Binance and Coinbase amid crypto crackdown
Binance and Coinbase have been targeted in a new round of lawsuits by the US Securities and Exchange Commission (SEC) against crypto businesses. On June 5, the regulator charged Binance with 13 charges, including the sale and exchange of unregistered offerings and tokens, or failure to register as a broker-dealer. The commission also went after Coinbase on similar grounds, alleging that popular cryptocurrencies offered by the exchange were securities. Trading volume on major decentralized exchanges surged 444% in the hours following the legal action. In the six months since FTX’s bankruptcy, SEC crypto-related enforcement actions jumped 183%.
SEC Cases: 67 cryptocurrencies are now viewed as securities by the SEC
The total number of cryptocurrencies named “safeguards” by the United States securities regulator has now reached an estimated 67, after it added a few more to its list of lawsuits against crypto exchanges Binance and Coinbase. In its case against Binance, the SEC introduced 10 cryptocurrencies under securities classification, while it named 13 cryptocurrencies in its Coinbase case. The “safe” label now applies to a market worth $100 billion, or 10% of the total crypto market capitalization of $1.09 trillion.
The Coinbase CEO’s stock sale was not scheduled a day before the SEC filing
Coinbase CEO Brian Armstrong sold shares of the company the day before the SEC lawsuit against the exchange. The transaction caused a minor stir in the Twitter cryptoverse, and Armstrong avoided a serious loss by doing so. SEC filings show Armstrong sold 29,730 shares of the company on June 5, the day before the SEC filing. Armstrong has been selling Coinbase shares since November under a 10b5-1 plan adopted in August, which predetermines the timing and volume of transactions. The net worths of Armstrong and Finance CEO Changpeng Zhao have taken a hit due to the lawsuits. Within 30 hours, Armstrong’s net worth dropped by $289 million and Zhao’s net worth dropped by $1.33 billion.
Binance.US Suspends USD Deposits, Warns of Suspending Fiat Withdrawals
Binance.US has suspended US dollar deposits and announced an upcoming suspension of fiat withdrawals starting June 13. According to the exchange, it was forced to take action amid “extremely aggressive and threatening tactics” by US regulators. Trading, staking, deposits and withdrawals are fully functional in crypto. Binance.US listed eight Bitcoin pairs and two BUSD pairs, while OTC trading portal services were suspended.
June 2023 has proven to be a tumultuous month for cryptocurrency exchanges in the United States. Crypto.com will no longer serve corporate customers in the US after announcing that the service will cease effective June 21. The Singapore-based cryptocurrency exchange cited limited demand from institutional clients as a primary reason for the move, exacerbated by the trial. Prevailing market conditions. US retail users still have access to cryptocurrency derivatives trading and updown options issuance.
Winners and losers
Over the weekend, Bitcoin (BTC) is in $26,449Ether (ETH) at $1,837 And XRP at $0.53. There is a total market capitalization $1.1 trillion, According to to CoinMarketCap.
Among the largest 100 cryptocurrencies, the top three altcoin gainers of the week were Terra Classic. (outside) 17.73%, XRP (XRP) 2.40% and stacks (STX) 2.39%.
The top three altcoin losers of the week were Sui (SUI) -22.08%, Conflux (CFX) -20.97%, and flare (FLR) 20.57%.
For more information on crypto prices, read Cointelegraph’s market analysis.
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Memorable quotes
“The SEC does not make the law. Indeed, this approach to regulation is unacceptable, but it is what we expect from the SEC and its anti-crypto stance.”
Christine SmithCEO of Blockchain Association
“We’re proud to represent the industry in court to finally get some clarity on crypto rules.”
Brian ArmstrongCEO of Coinbase
“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] With all these enforcement measures opened this year, 2023; I think it sounds like CYA [cover your ass] To me.”
French HillA representative of the United States
“When regulation does not meet technological innovation, America loses its competitive edge over other nations.”
Ryan WyattHead of Polygon Laboratories
“We believe that capital markets information will be completely different in a few years, and it’s our job to lead the revolution.”
Ittai Ben ZeevMoreCEO of the Tel Aviv Stock Exchange
Forecast of the week
Bitcoin Price Can Gain 60% If ‘Textbook’ Chart Pattern Confirms – Trader
If the long-term chart feature holds, Bitcoin could be in line for a 60% upside. Popular nickname trader Mikybull Crypto has flagged encouraging signs on the BTC/USD weekly chart, arguing that the pair has closed and is now retracing the inverse and shoulder pattern.
“Bitcoin Illuminates a Textbook on Inverse Head and Shoulders Weekly TF. “Price is currently retesting the neckline after the breakout,” explained MickeyBull Crypto, adding, “If the range between the head and the neckline generally sprints, we expect another 60% rally in BTC.”
That 60% “sprint” would put BTC/USD at around $40,000.
FUD of the week
US Bitcoin Supply Drops Over 10% in Last Year – Glassnode
Gary Gensler: Crypto market is like 1920s stock market, full of ‘scams’
During a speech this week, US SEC Chairman Gary Gensler compared the current crypto market to the stock market of the 1920s, saying it was full of “huxters”, “scammers” and “Ponzi schemes”. He argued that just as Congress cleaned up the stock market by passing securities laws in the past, the current SEC can also clean up the crypto market by applying these laws. Gensler has been heavily criticized in the crypto industry, especially after the SEC filed lawsuits against crypto exchanges Binance and Coinbase. Critics say he has an overly expansive view of the SEC’s regulatory authority and is driving innovation out of America.
GameStop Fires CEO Matt Furlong Months After Crypto Push Was Fired
GameStop has fired its CEO Matt Furlong, the executive responsible for starting the company’s push into NFTs. The news came on the heels of GameStop’s first-quarter earnings call, which reported earnings per share that missed market expectations by more than 133%. The company did not give a reason for Furlong’s dismissal. He will be succeeded by billionaire investor Ryan Cohen. GameStop launched its NFT marketplace in June 2022, selling nearly $2 million in the first 24 hours of operation. However, in August, daily sales volumes fell below $4,000, a 99.8% drop from the opening day.
Best Cointelegraph Features
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6 questions for Thiago Cesar by Transfero
Transferro’s Thiago Cesar says that when he started buying bitcoin in 2012, he knew it had the amazing potential to “internationalize money”.
Layah Heilpern worked as a journalist for a Chinese state-run television network before falling down the “rabbit hole” of cryptocurrency.
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