On Monday local time, after the U.S
On Monday local time, after the U.S. Securities and Exchange Commission (SEC) sued Binance and its CEO Changpeng Zhao, the stock prices of Cryptocurrency and crypto and blockchain related companies plummeted, which was another blow to the industry.
SEC sued Yuan An and its CEO Changpeng Zhao for secretly controlling Yuan An. As part of the "fraudulent network" to evade US law, it includes illegal activities such as operating unregistered exchanges, selling unregistered securities, and abusing customer funds. Gary Gensler, chairman of the SEC, said in a statement that through 13 charges, they accused Changpeng Zhao and the Monetary Security Entity of participating in a wide range of fraudulent transactions, conflicts of interest, lack of disclosure and deliberate evasion of the law.
After the news, the price of Bitcoin, the world's largest Cryptocurrency, fell 5.45%, falling below the US $26000 threshold, the lowest level since mid March. Yen An's own Cryptocurrency fell 9.72%.
John ReedStark, former director of the SEC's Internet Enforcement Office, said, "This is another targeted attack that has had a devastating impact on the encrypted ecosystem. Soon, no one at the SEC can sue
Coin An stated in a statement that it has been cooperating with the SEC's investigation and "working to answer their questions and address their concerns," including attempting to reach a settlement through negotiations. The company stated, "In today's complaint, the SEC abandoned this procedure and chose to take unilateral action and file a lawsuit. We are disappointed with this choice
The SEC's move to abandon reconciliation and file a lawsuit highlights its radical position on the Cryptocurrency industry. The agency said that the Cryptocurrency industry violated its trading and securities issuance rules.
After the news of the SEC's lawsuit against Coinbase, the stock price of Coinbase, the largest listed Cryptocurrency exchange in the United States, fell 9.1%. Crypto miner RiotPlatforms fell 8.8%, MarathonDigital fell 8.4%, and Hut8Mining fell 4.6%.
After the US SEC took a series of actions against encryption companies this year, several companies have invested in expanding their operations outside the United States. Coinbase and Gemini, both cryptocurrency exchanges, launched international exchanges for cryptocurrency derivatives in May.
Rajeev Bamra, Senior Vice President and Director of Decentralized Finance and Digital Asset Strategy at Moody's Investor Services, stated that despite this, the regulatory actions in the United States "emphasize the necessity of establishing safeguards in these markets to meet the expectations of investors and customers.
Therefore, these accusations may reshape the regulatory landscape of digital assets, "he said.
This article originates from the financial industry
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