Bitcoin rose to trade above US$26,000, recovering some of the ground it lost in the week since the U.S. Securities and Exchange Commission (SEC) filed lawsuits against two of the world’s largest crypto exchanges. The U.S. regulator accuses Binance.US and Coinbase of breaking securities rules. All other top 10 non-stablecoin cryptocurrencies also gained, with Binance’s native token BNB leading the gains.
See related article: Crypto industry reacts to SEC’s lawsuit against Binance
Bitcoin gained 1.00% to US$26,074 in the 24 hours to 4 p.m. in Hong Kong. The world’s largest cryptocurrency by market capitalization is up 1.32% on the week, according to CoinMarketCap data.
Ether, the world’s second biggest cryptocurrency after Bitcoin, rose 0.64% to US$1,748 in the past 24 hours. However, it is down 3.60% over the last seven days.
BNB, the native token of the world’s biggest cryptocurrency exchange Binance, climbed 5.10% to US$235, although it posted 15.11% weekly losses. The gains come after U.S. Republican Congressman Warren Davidson tweeted on Monday that he had filed a bill to restructure the SEC and remove its current chairman Gary Gensler.
“U.S. capital markets must be protected from a tyrannical Chairman, including the current one. That’s why I am introducing legislation to fix the ongoing abuse of power and ensure protection that is in the best interest of the market for years to come,” Davidson said.
There’s nothing about the crypto securities markets that suggests that investors & issuers are less deserving of the protections of our securities laws.
Congress could have said in the 1930s that the securities laws applied only to stocks & bonds.
For more, read my remarks:
— Gary Gensler (@GaryGensler) June 12, 2023
Solana, Polygon and Cardano – three of the crypto tokens named by the SEC as securities – all gained on Tuesday afternoon. However, all three have recorded losses of over 20% in the week since the SEC clampdown started.
Solana gained 2.14% to US$15.42 in 24 hours, while Cardano rose 0.28% to US$0.2795. Polygon climbed 2.39% to US$0.6459.
“The recent lawsuits filed by the SEC against Binance and Coinbase indicate a significant shift in regulatory approach towards the digital asset industry,” Mahin Gupta, founder of Liminal, a wallet infrastructure and custody solutions platform, said in an emailed statement.
“While these measures may ultimately contribute to legitimizing the Web3 industry in the long run, it is important to acknowledge that such strong actions could potentially stifle innovation,” Gupta added.
The increasing regulatory clampdown on cryptocurrency exchanges in the U.S. is creating opportunities in the field of digital finance in Asia.
In the same week that the U.S. SEC announced it would sue Coinbase and Binance.US, stablecoin operator Circle announced that it had received a Major Payment Institution license from the Monetary Authority of Singapore (MAS), the city state’s central bank.
Similarly, digital assets bank Sygnum said Tuesday that MAS had granted it an in-principle approval for its Major Payment Institution Licence. The bank now plans to expand its regulated operations in Singapore, including its crypto brokerage service.
In the last 24 hours, the global crypto market capitalization rose 1.17% to US$1.06 trillion, and total market volume strengthened 5.57% to US$28.83 billion.