CryptoWatch: Binance's Massive Case with the SEC and How it Affected Crypto Prices

Isaiah Richard, Tech Times 11 June 2023, 08:06 pm

The cryptocurrency industry has been at a massive standstill in the past week, and CryptoWatch followed the massive development of the Binance case last week, particularly with the SEC's major crackdown on the company. Its latest case alleges that Binance violated multiple laws and regulations under the Commission, centering on unlicensed operations and unregistered securities.

(Photo : Tech Times)

That being said, the cryptocurrencies in the market saw a significant decline and almost all coins experienced a down, with some ceasing the trading of top coins in the market.

SEC's Crackdown on Binance, its CEO, and its US Operations

One of the most significant crackdowns in the crypto industry erupted last week as the Securities and Exchange Commission filed a lawsuit and multiple charges against Binance. It is not only the crypto exchange company that is getting this but also its Binance.US operations and the top executive of the organization, its CEO Changpeng Zhao.

(Photo : Justin Sullivan/Getty Images)

In the filing by the SEC, the regulatory commission said that Binance remained unlicensed in several securities exchanges that it offers.

Moreover, the company evaded the law with its US operations, particularly by enacting their businesses that put investors at significant risk. The SEC went as far as to say that Binance remained reluctant to be regulated by the agency, now facing as much as thirteen charges to its name.

Binance: SEC's Gensler Once Offered to be an Advisor

In the massive turn of events last week, Binance finally spoke its side regarding the case, but it was not in defense of their actions but aims to reveal something significant in the case. This is with the company's lawyers revealing in its documents that before being the SEC Chair, Gary Gensler has previously offered Binance to be one of its advisors.

The lawyers revealed that this was way back in 2019 when Gensler was still a professor over at the Massachusetts Institute of Technology's Sloan School of Management.

In a report, it was said that people familiar with the matter claimed that it was Binance who was approaching Gensler for the position, with the now SEC Chair being uninterested in the offer.

Crypto Affected in Binance's Case with the SEC

The grueling case between Binance and the SEC has greatly affected cryptocurrency and its prices in the market, with most of the coins seeing a drop in their numbers. The top two cryptos in the market, Bitcoin and Ethereum, saw a five percent drop in their valuation before the week ended last week.

It is not only Binance that is facing the regulatory crackdown, but also Coinbase, a company from Brian Armstrong.

Moreover, it also affected other coins and crypto exchange companies like Robinhood and Crypto.com, as it will no longer sell the likes of Cardano, Polygon, and Solana as these coins are considered to be "crypto asset securities."

Despite these massive changes, other coins are not affected says Robinhood, and would be continued to be allowed to trade on their platform in the future.