SEC Files Charges Against Binance and Coinbase
In a groundbreaking move, the US Securities and Exchange Commission (SEC) has expanded its purview on the cryptocurrency market by labeling 67 coins as securities. This unprecedented step comes in the wake of recent lawsuits against Binance and Coinbase, two leading cryptocurrency exchanges. The cumulative market value of the affected coins reaches a staggering $100 billion.
Binance Faces Serious Accusations
On June 5, the SEC filed 13 charges against Binance and its founder, Changpeng Zhao. The agency alleges that they profited to the tune of billions of US dollars by offering unregistered securities services and sales of tokens. This action, they claim, put investors in considerable risk.
Coinbase Also in SEC’s Crosshairs
The legal onslaught didn’t stop at Binance. On the following day, the SEC also filed a suit against Coinbase, citing similar allegations. The organization accused Coinbase of operating as an unregistered broker.
A Long List of Altcoins Marked as Securities
The lawsuits against Binance and Coinbase resulted in the SEC classifying a total of 23 cryptocurrencies as securities. When combined with previous cases like Bittrex and Ripple, the label of ‘security’ now applies to over $100 billion worth of crypto assets. This accounts for around 10% of the $1.09 trillion total crypto market capitalization.
The Impacted Tokens
The full list of tokens named as securities by the SEC on Binance include ATOM, BNB, BUSD, and COTI. The tokens named in the Coinbase filing include CHZ, NEAR, FLOW, ICP, VGX, DASH, and NEXO. For both Binance and Coinbase, the list includes SOL, ADA, MATIC, FIL, SAND, MANA, ALGO, AXS.
Binance and Coinbase Respond to Lawsuits
Following the lawsuit, Binance US suspended US dollar deposits while reassuring that fiat withdrawals would be paused on June 13. The exchange has taken steps to ensure a smooth transition to a crypto-only exchange. Despite the lawsuit, all trading, staking, deposit, and withdrawal services in crypto remain operational.
Meanwhile, Coinbase has defiantly continued to support the said securities tokens. In a June 7 interview, Coinbase CEO, Brian Armstrong, clarified that the exchange has “no plans to delist any of these assets.” The CEO intends to keep the business running as usual until a legal determination is reached.
