The SEC’s move against Coinbase was the talk of the town for a while, and it finally materialized. Coinbase was officially slapped with legal action on Tuesday after the SEC said it ‘deliberately’ chose not to follow applicable rules. As expected, it resulted in a major market price drop, but the good thing is that once again, Bitcoin and altcoins have managed to find their groove back instantly.
It wasn’t just another price drop. For a while there, Bitcoin touched the higher ends of $25K after previously holding the line at mid-$27,000. But, it didn’t take long to regain the lost price. As a matter of fact, it regained price faster than ever before, and the reason is clear. No one’s really surprised at the SEC’s and its chairman Gary Gensler’s actions, so after the initial shock, everything goes back to normal.
Regaining Lost Ground
There was a bit of a back and forth battle by Bitcoin once the SEC publicly announced the legal action against Coinbase. A move against Binance was also announced and should follow soon enough. As expected, it sent the crypto market price in a downward spiral. There were a few jump scares there when Bitcoin dropped below $26,000. It was a massive drop of around 10% or more, but only for a moment.
It didn’t take long for Bitcoin and altcoins to regain their lost ground. Currently trading around the $27,000 mark, things are back where they were before the SEC’s shakedown. It shows that Gary Gensler’s actions surprise no one. The watchdog is obviously bent on destroying the crypto market, and Coinbase is the first step toward achieving that goal. Binance is obviously next. The SEC said that just like Coinbase it deliberately ignored applicable laws, while also mishandling customer funds.
Mishandling is the exact terms the SEC used when it took action against FTX. We all know how that ended. FTX’s collapse sent negative price signals across the crypto industry and ruined what was supposed to be a good bullish run. But, the best thing about it all is that the market is finding its groove right afterwards, which means that regardless of the SEC’s actions, it will always fight back.
Binance and FTX’s Case Are Not the Same
The action against Binance was brewing for a while. The SEC has repeatedly said that the world’s largest crypto exchange is mishandling customer funds and has poor financial control. Just weeks prior to it, the company’s chief communications officer refuted these claims. Binance said that it’ll fight the SEC if needed, once again confirming that its actions have always been legal.
The comparisons between Binance and FTX are baffling. While the SEC used the term ‘co-mingling’ for the apparent misuse of funds, it—probably deliberately—forgot about one thing – Binance’s native token BNB. It’s public and available to invest it, which is a whole different story in regards to FTX’s native token and its role in Alameda Research.
It’s obvious that the SEC has set its sights on crypto exchanges and that it wants to ruin crypto for everyone. But, big companies who do everything by the law will fight back, and we have our money on Binance this time.