Coinbase Falls 9% Following Binance Lawsuit: Business Calls for "Clear" Crypto Regulation
A day back, the SEC filed a complaint against crypto exchange Binance. The regulator specifically filed a lawsuit against the business and executive Changpeng Zhao for breaking securities laws. The exchange was also accused by the authority of improperly handling customer funds. Furthermore, it has also argued that the defendants have been lying to authorities and investors regarding its operations.
Binance’s BNB was one of the hardest hit victims. Yesterday, it decreased all the way to $272 from a daily high of $305. The majority of other large and mid-cap cryptos did the same. It is well known that Binance has the highest volume of any exchange worldwide. Coinbase continues to stand. Each day, both exchanges settle billions in volume.
Unsurprisingly, the lawsuit development led to another loss for Coinbase's stock. Yesterday, it experienced a significant 9.05% decline and closed at $58.71. The overall stock market was fairly steady. For contrast, the Nasdaq Composite Index plummeted by barely 0.09%, while the S&P 500 shed only 0.2% of its value in the same timeframe.
The crypto industry joins to become one
The entire industry was taken aback by the SEC's lawsuit against Binance. Nearly everyone at this point is on Binance's side, from traders and investors to rivals and foes. In fact, there are numerous calls for unanimity. One particular gamer who enjoys tweeting recently said the following in response to the current situation:
“The SEC going harder at Binance/Coinbase/Kraken/Ripple than it ever did at FTX. That about says all you need to know about the situation.”
Tron founder Justin Sun expressed his unwavering support for Binance and CZ. Charles Hoskinson, the founder of Cardano, added that the event "does seem like this is a perfect opportunity for the entire industry to set aside its fragmented nature and unite for a common sense set of rules and guidelines."
In fact, cryptocurrency exchange Coinbase is currently advocating for clear regulations for crypto. According to the company’s Chief Legal Officer Paul Grewal, crypto is solving real-world challenges. In other words, "a clear path forward" is required in the space to safeguard responsible innovation. Recently, the executive wrote in a blog post
“Digital assets do not collectively fit into any single existing regulatory box: some are commodities, some are securities, some are neither, and some simply don’t map onto existing categories. With more than 20 percent of Americans owning and using crypto, we need a regulatory framework that will protect consumers and enable the critical uses of this new technology to continue and grow.“