Binance, the world’s largest cryptocurrency exchange in terms of volume, has been facing serious battles with regulators for years. However, this year, the situation has become even more complicated as the company finds itself in a legal dispute with the SEC and CFTC. So, what should BNB Coin investors pay attention to? What do the recent developments imply?
Binance Coin (BNB) and the Lawsuit
The battle between the SEC and Binance US continues. The hearing of the case will take place on Monday, and it is expected that the regulatory agency will publicly release the confidential documents related to the case on Friday. This indicates that BNB Coin investors need to be even more cautious in the coming days. The allegations made by the SEC suggest various crimes beyond facilitating the trading of unregistered securities. There are claims of lax KYC and AML policies, as well as allegations that customer assets are mixed with the company’s treasury.
The CEO of Binance US, the Chief Legal Officer, and the Chief Risk Officers have recently resigned. According to CZ, these resignations should not be turned into FUD (Fear, Uncertainty, and Doubt) and were not surprising. The CEO of Binance announced that someone with experience in regulatory agencies and up-to-date conditions will be appointed in place of the outgoing CEO of Binance US, and it is expected that they will perform better.
The lawsuit filed against Coinbase, on the other hand, focused solely on the trading of unregistered securities. Moreover, the fears regarding this case have been eliminated due to the details about the second market sales in the summary judgment of XRP Coin.
BNB Coin Analysis
The long battle between Binance US and the SEC has had serious negative consequences for the company. For example, while the trading volume of the exchange had exceeded $10 billion, it has now dropped below $20 million. This indicates that a majority of US-based users have distanced themselves from Binance, indirectly resulting in a weakened demand for BNB Coin.
At the time of writing, the price of BNB Coin is $214. In the short term, closing above $210 could lead to a price rally towards $218 and $225. In the case of a potential decline, the levels of $204 and $190 come into play.
