SEC lawsuits against Coinbase and Binance are extremely positive for BTC and ETH (statement)

SEC lawsuits against Coinbase and Binance are extremely positive for BTC and ETH (statement)

The US stock exchange supervisory authority Securities and Exchange Commission put out for the crypto exchanges last week by submitting sharp complaints against Binance and Coinbase. While crypto exchanges and old coins are in focus, the regulatory authority BTC and ETH will at least initially leave.

When the news of the complaint of the SEC against Binance and Coinbase reached the markets, the prices of all assets collapsed on a broad front. BNB crashed by 10 % within 24 hours. On Sunday he lost another 5 % and continued to take a low of several months of $ 223

Bitcoin prices crashed from $ 27,100 on Sunday to $ 25,750 on Monday. But the oldest and capital-strongest cryptocurrency blockchain in the world recovered quickly.

BTC and ETH rally with imposed new complaints of the SEC

BTC recovered again on Tuesday over the $ 27,000 mark, although the news spread about a second second lawsuit against Coinbase.

Although the increased enforcement measures of the authority against the crypto industry harmful crypto prices last week, it looks as if BTC and ETH be undermined the regulatory pressure unscathed. Bitcoin has already risen by 2.75 % in the five-day window, with the lawsuits of Binance and Coinbase.

Ethereum experienced a massive rally because the latest SEC messages were priced in the market. Ether prices on crypto exchanges jumped from $ 1,800 on Tuesday at 1:30 p.m. UTC to a maximum of $ 1,890 before the session changed. That was a remarkable intraaday increase of 5 % for the second largest cryptocurrency.

SEC leaves Bitcoin, Ether and Ripple alone

The SEC described this 19 token in the documents submitted by Binance and Coinbase as securities.

This could have massive effects on these tokens and the industry as a whole.

A few short thoughts.👇 (1/9) 8. June 2023

The legal theory of the complaints of the SEC against the two large crypto exchanges is based on a 90-year-old law. The Securities Act from 1933 was issued to protect investors after the 1929 stock market crash.

between the Securities Act and the "Howey test" from a decision by the Supreme Court of 1946, the SEC US courts want to convince that many of Coinbase and Binance to sell and exchange cryptocurrencies correspond to the legal definition of securities.

If the theory of the SEC prevails in court, Coinbase, Binance and any other crypto exchange would have to register from the US federal government with the authority and comply with the rules they have defined to protect private investors.

But even in the worst case, these legal disputes would have Bitcoin, Ethereum etc. Ripple can get away without prejudice. The SEC has not bothered in the bony or in the coinbase lawsuit to name it as securities.

Both private investors and institutions therefore tend to see less risk and more upward potential for these cryptocurrencies. The reluctance of the seconds to challenge their happiness with these raw materials is incredibly optimistic for XRP, ETH and BTC.

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