When the Securities and Exchange Commission announced charges against Binance as well as Coinbase, it triggered a sell-off on the alt-coins. On the weekend, Cardano (ADA) lost 20% in value. Binance (BNB) lost 10%.
XRP was down 8%, Solana (SOL) down 22%, and Polkadot -12%.
The SEC is suing Binance in a US district court for its unregistered securities operations. Despite the SEC being unable to serve CEO Changpeng Zhao citing not knowing his whereabouts, it still disrupts Binance’s operations.
Binance informed its customers that Binance.US will not accept deposits. It will also US withdrawals as soon as June 13. Binance said that the SEC took to using extremely aggressive and intimidating tactics. The SEC’s pursuit of an ideological campaign against the American digital asset industry is disruptive.
Binance will need to stop working with its business and bank partners. The firm will operate Binancee.US as a crypto-only exchange. Maintaining a 1:1 reserve for customer assets will limit a panicked run on the bank for the platform.
Binance’s actions will hurt the alt-coin market. It reduces liquidity, weakening the appeal of digital currency.
Cardano and BNP’s drop may continue in the coming weeks. Customers will unwind in their position.
