Lately, the SEC has cracked down on crypto as it takes legal action against Binance and Coinbase. However, against the odds, daily trading volumes on decentralized exchanges (DEX) have surged by nearly $800 million over the past two days. Here’s everything you need to know.
TL;DR
- SEC takes legal action against Binance and Coinbase, accusing them of securities law violations and unregistered operations. Despite the challenges, trading volume on DEX has surged by nearly $800 million in the past two days.
- The SEC issues a temporary restraining order against Binance, while it files a lawsuit against Coinbase for alleged securities violations. The SEC aims to freeze assets and repatriate funds to ensure customer safety and address regulatory concerns.
- Despite the legal turmoil, traders flock to DEX platforms like Uniswap and PancakeSwap, driving the surge in trading volume. Binance sees net outflows, but its resilience is evident with a stablecoin balance of over $8 billion. The crypto community remains innovative amid the SEC’s crackdown.
The SEC Cracks Down on Crypto
Binance and Coinbase vs The SEC
Recently, the SEC has taken legal action against two major players in the crypto market. Binance, the world’s largest crypto exchange, has been accused of mishandling funds and operating an unregistered securities exchange. Meanwhile, Coinbase, one of the leading crypto platforms, has also been sued by the SEC for alleged securities law violations. Despite these legal challenges, trading volume in the crypto market has reached new heights.
The SEC has filed a motion in the District of Columbia U.S. District Court, seeking a temporary restraining order against Binance, Binance.US, and CEO Changpeng Zhao (CZ). The motion requests various actions, including freezing the assets of Binance.US and repatriating fiat and crypto held by U.S. customers. The SEC is concerned about the safety of customer assets and the defendants’ alleged disregard for U.S. laws and regulatory oversight.
Coinbase, on the other hand, is facing allegations from the SEC of offering unregistered securities and acting as an unregistered securities broker. The SEC claims that Coinbase’s staking program violates the Securities Act. Despite these legal challenges, the trading volume on DEX has soared in the past two days.
Trading Volume Surges
Data from CoinGecko reveals that total daily trading volumes on top DEX platforms such as Uniswap and PancakeSwap have surged by nearly $800 million. Investors are rushing to these DEX as they navigate the legal uncertainties surrounding centralized exchanges like Binance and Coinbase. The trading volume on Curve, a DEX specializing in stablecoin trading, has also experienced a significant spike.
Interestingly, while DEX volumes have surged, Binance has witnessed substantial net outflows, with over $778 million leaving the exchange. This market frenzy comes in the wake of the SEC’s legal actions against major crypto exchanges. Despite the turmoil, Binance maintains a stablecoin balance of more than $8 billion. This shows its resilience in the face of these challenges.
As the SEC tightens its grip on the crypto market, it’s important to note that certain cryptocurrencies, including $MATIC, $ICP, $NEAR, and $DASH, are being recognized as securities by the regulatory body. The SEC alleges that Coinbase continued to add these potentially securities-backed assets to its platform, despite being aware of the risks.
The summary
The SEC’s legal actions against Binance and Coinbase have caused a stir in the crypto industry. However, traders are undeterred, and trading volume on decentralized exchanges has reached new heights. The war on DeFi is heating up, and the outcome of these legal battles will have significant implications for the future of the crypto market. As investors navigate these uncertain times, the resilience and innovation of the crypto community continue to shine through.
