The prices of cryptocurrencies are highly affected by the recent crackdown by the Securities and Exchange Commission, causing a massive drop to the entire industries but highly influencing specific coins. The currently facing the dreaded lawsuits now are Binance and Coinbase, but other crypto-exchange companies are also affected.
Not only that but because of this massive suit from the SEC, some cryptocurrency coins are no longer available for trading on different platforms because of the potential cases it invites.
Crypto Prices Dropped After SEC's Battle against Binance, Coinbase
WASHINGTON, DC - OCTOBER 03: Securities and Exchange Commission (SEC) Chair Gary Gensler listens during a meeting with the Treasury Department's Financial Stability Oversight Council at the U.S. Treasury Department on October 03, 2022 in Washington, DC. The council held the meeting to discuss a range of topics including climate-related financial risk and the recent Treasury report on the adoption of cloud services in the financial sector.
In a recent report by CNBC, cryptocurrencies have begun to drop in value and have affected almost the entire industry in its operations in the present. Supposedly, this was the time that crypto bounced back as 2023 was the hopeful year for its return, particularly with the rallying of the top coins in the market, including Bitcoin and Ethereum, both suffering as much as a five-percent drop as the week closes.
All of this is influenced by none other than the SEC's crackdown against Binance and Coinbase, both seeing regulatory issues.
Read Also: Binance.US Halts USD Crypto Purchases Amid SEC Legal Battle
Some Coins Are No Longer Sold to Avoid Lawsuits
However, this regulatory crackdown has also affected other companies to stop selling specific coins the SEC considers "crypto asset securities."
Robinhood has already provided an update regarding three coins to be no longer available in its platform, like Cardano, Polygon (MATIC), and Solana, all ceasing any kind of trading. The crypto exchange company claimed that other coins are unaffected and will continue normal operations.
Crypto.com also announced that it is shutting down its US institutional exchange.
Cryptocurrency's Problems
There are still many believers in the cryptocurrency cause, and people have been rallying for the past months since the start of 2023 to bring certain coin prices up after a massive decline last year. However, a tech investor known as Chamath Palihapitiya has recently claimed that "crypto is dead in America," with the regulatory crackdowns to blame.
Recent high-profile cases include Coinbase's suit with the SEC, with the regulatory agency looking to bring the wrath of the law against the crypto exchange company's operations. Following the SEC warning against them, a massive drop in Coinbase's shares has seen a massive drop to as much as 15 percent, highly affecting its operations.
However, at this time now, it is not only Coinbase that is affected by regulatory problems, as many more like Binance have encountered it.
With cryptocurrencies facing significant regulations and possible suits, different crypto companies have already stopped their trading of four coins, seeing as they do not have the right registered securities and licenses. The continued crackdown also signifies a massive drop, and seems like it will not let up anytime soon.
Related Article: SEC is Gunning for Binance and its CEO in a New Lawsuit-Law Evasion, Unlicensed Platform, and MORE
