Following the recent lawsuits filed by the U.S. Securities and Exchange Commission (SEC) against Coinbase and Binance for securities violations, the cryptocurrency market experienced a sharp sell-off last week. However, signs of stability emerged in Cryptocurrency Prices on Monday, indicating a potential recovery.
Altcoin Fluctuations – Cardano’s ADA, Solana SOL, MATIC, and BNB
Despite the initial decline, some altcoins began to stabilize on Monday after experiencing significant fluctuations over the weekend.
Cardano’s ADA coin remained unchanged, briefly dropping by around 17%. Meanwhile, Solana’s SOL coin sustained a 6% decline, and Polygon’s MATIC saw a decrease of more than 2%. Notably, Binance’s BNB token remained relatively stable over the weekend but encountered a loss of over 3% on Monday.
In the past week, various altcoins faced notable declines. Cardano’s coin witnessed a drop of 27% from June 2 to June 9, while Solana’s and Polygon’s coins experienced losses of 23% and 24%, respectively.
Additionally, BNB token fell by over 18%, reflecting the market’s reaction to the SEC lawsuits.
Lawsuits and Allegations Defying Stability of Cryptocurrency Prices
The SEC’s lawsuits against Coinbase and Binance accused both exchanges of failing to register as required entities and selling unregistered securities. Moreover, the SEC named several coins, including Solana, Cardano, and Polygon, as potentially falling under the definition of securities.
Further, Binance faced additional allegations, including inflated trading volumes, diversion of customer funds, and misleading customers about its controls.
Amid the market turbulence, bitcoin and ether maintained relative stability, hovering below the flat line on Monday. Yuya Hasegawa, a crypto market analyst at Japanese bitcoin exchange Bitbank, noted that bitcoin’s decline was limited compared to other cryptocurrencies.
However, he cautioned about potential volatility in the coming week, given the uncertainty surrounding the SEC’s legal actions and the anticipation of U.S. CPI and FOMC meetings.
SEC Chairman’s Perspective On Regulating Crypto Firms
Gary Gensler, the SEC Chairman appointed by U.S. President Joe Biden, emphasized the need for compliance with U.S. securities law in the crypto industry.
In an interview, Gensler stated that the investing public should benefit from the same protections provided by securities laws, emphasizing that “we don’t need more digital currency.” His remarks underscored the SEC’s commitment to regulating crypto firms and exchanges.
Signs of Stabilization In Cryptocurrency Prices Emerged on Monday
While concerns over the SEC’s crackdown initially triggered a market sell-off, signs of stabilization in crypto prices emerged on Monday. Altcoins exhibited varying degrees of recovery, with some stabilizing after significant declines. Bitcoin and ether maintained relative stability, albeit below the flat line.
The impact of the lawsuits filed against Coinbase and Binance continues to shape the crypto market, raising questions about compliance and the regulatory environment.
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