The crypto sector is currently roiling from regulation and lawsuit news from the US side. Lawsuits against Binance and Coinbase, which have a shock effect on Bitcoin (BTC) price including all cryptocurrencies, continue with interesting developments. The US Securities and Exchange Commission (SEC), which initially announced the lawsuit against Binance, later detonated the Coinbase bomb. Coinbase CEO Brian Armstrong appears to be upset about the two exchanges being lumped together.
Coinbase CEO reacts to Binance
In the lawsuit filed against Coinbase by the SEC, it is emphasized that Coinbase has illegally facilitated the trading of crypto asset securities since at least 2019, earning billions of dollars. The SEC, also referring to the staking service, had emphasized that this too was unlicensed securities sales. A message of “unity” came from the Binance side after the lawsuit against Coinbase, whereas Coinbase’s CEO took a very different stance.
Coinbase CEO Armstrong emphasized in his statements on the subject:
The business models of Coinbase and Binance and the lawsuits brought against them could not be more different! We have a history of being transparent with the SEC for many years.
The point actually emphasized here by Coinbase‘s CEO is seen as acknowledging that the exchange, based in the US, has been assisting the SEC and other regulators on many issues. Despite Binance not being based in the US, it had entered the country by establishing US-based affiliates. It is known that Binance served the US without any US-based institution in its early years.
COIN price is rising
After these statements by the Coinbase CEO, the exchange’s stock, COIN, experienced a 2.5% increase, and this rise was seen even before the US markets opened. The COIN price, which had fallen to its worst level in 11 weeks, rose with these statements, with everyone agreeing that the worst case had been priced in.
The crypto industry also experienced a similar situation, and the BTC price recovered after falling to its worst level in recent times. After BTC spiked back to $27,000, it achieved a flat outlook at $26,700 levels. BNB, which is associated with Binance, was one of the coins that turned the fastest and sharpest red with an 11% drop in 7 days.