There are ramifications regarding SEC’s recent accusations against well-known crypto exchanges. Binance and Coinbase are getting a lot of pressure as the price action across the cryptocurrency market has remained negatively skewed.
By limiting overall liquidity, the litigation has also impacted the DeFi markets, and most analysts predict that the chaos will only worsen. Will crypto recover despite the current circumstances, though? Only time will tell.
SEC Targets Central Exchanges:
The June 5 and 6 civil lawsuits against Binance and Coinbase are no laughing matter. According to the SEC, 61 cryptocurrencies worth $100 billion are securities.
With declining liquidity, stablecoin and major cryptocurrency token balances have also declined significantly at Binance. Since June 5, stablecoin balances have fallen nearly 20 percent.
The new SEC lawsuit is just the latest in a long line of controversy over the actual use of cryptocurrencies. Some believe U.S. government figures are unhappy with the cryptocurrency business as a result of the FTX collapse. The most recent conflict centers on the use of consumer funds by the exchanges, as mentioned earlier.
But The Price of Bitcoin is Lagging: Will Crypto Recover?
When it comes to Bitcoin, The Dow and S&P 500 continue to have a strong correlation with cryptocurrency values, and most of the world’s largest banks forecast a severe recession in the United States sometime in 2023. Despite this, Major market indices reached yearly highs following the agreement on the U.S. debt ceiling.
The SEC’s actions are causing the distinction between stocks and Bitcoin to get bigger and bigger. About $88 million has been lost from investments in digital assets due to recent circumstances.