Significant Development: The SEC Files Lawsuits Against Coinbase and Binance in an Effort to Transform the Crypto Market

Crucial for the Crypto Industry: Image by TipRanks

The SEC sued both Coinbase and Binance. A day after suing Binance, the biggest cryptocurrency exchange in the world, the American securities watchdog filed a lawsuit against cryptocurrency platform Coinbase.

By establishing the SEC's authority over the sector, the lawsuit has the potential to drastically alter the cryptocurrency market. Following the lawsuit, Coinbase has already seen net withdrawals of almost $1.28 billion.

The SEC, meanwhile, charges Binance and Changpeng Zhao, its CEO, with running a "web of deception." In its lawsuit defense, Binance emphasizes that the SEC is concealing information from the cryptocurrency industry. According to experts, the SEC is increasingly focusing its regulatory efforts on Bitcoin firms. The effects can be widespread and have a significant influence on the cryptocurrency market.