cryptocurrencies they collapse this Saturday June 10, especially small caps. The fall occurs in a week where the Securities and Exchange Commission (SEC) from United States sued in court to exchange platforms Binance and Coinbase.
The investors of the crypto assets interpreted these denunciations of the sec as a advance of the US authorities towards stricter regulation of the sector.
In that framework, the Bitcoin (BTC)the main cryptocurrency, falls 3.5%. For his part, while Ethereum (ETH) drop by 5.6%according to the Coinmarketcap quotes portal.
But the biggest crashes they occurred between the smallest cryptocurrencies and tokens: Cardano (ADA) decreased 19.5%, Dogecoin (DOGE), 13.5%; Solarium (SUN), 21.7%; Polygon (Matic), 26.2%; and avalanchetwenty%.
The SEC sued Binance and Coinbase
The SEC sued this week to Binance and Coinbase, two of the main crypto asset exchange platforms.
In the case of Binancethe regulatory body accused the company and its founder Chengpeng Zhao of misuse of client fundsmisled investors and regulatory authorities, and for breaking applicable securities laws.
“We assert that Zhao and the Binance entities were not only aware of the rules, but consciously chose to circumvent them and put their clients and investors at risk in order to maximize their own profits,” the SEC denounced.
The agency pointed out last Monday that Binance incurred in a breach of trust by diverting assets from their clients to Merti Peak Limited, a company also controlled by Zhao.
On the demand, the SEC also alleged that a dozen tokens such as Cardano, Solana, and Polygon, were offered and sold as securities on Binance when they were not legally registered as such: the drops in today’s prices had a special impact on this group.
In response, Binance called the SEC’s actions “disappointing” and “unwarranted”and anticipated that he will defend his interests “vigorously.”
One day later, the SEC also sued the Coinbase platform by operate as a stock exchange and stockbroker without being properly registered.
Coinbase anticipated that it will take the legal battle, if necessary, to the Supreme Court.which, if materialized, would set a precedent for the regulation of the sector.
From the point of view of the SEC, Bitcoin is a commodity but most tokens are subject to investor protection laws and therefore exchanges like Binance must register with the agency.
Source: Ambito
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