Cryptocurrency
SEC lawsuits against Binance and Coinbase unify the crypto industry
Professionals across the crypto sector have responded to the United States Securities and Exchange Commission’s (SEC) recent actions against two of the biggest crypto exchanges, Binance and Coinbase.
On June 5, the SEC filed a lawsuit against Binance for allegedly offering unregistered securities. Only a day after filing the Binance suit, the commission also went after Coinbase on similar grounds, alleging that popular cryptocurrencies offered by the exchange, such as Solana, Polygon and The Sandbox, qualify as securities. reached out to market players working in the space for their responses to the recent actions by the SEC. From sharing a belief that it will drive crypto companies away from the U.S. to simply calling the SEC’s actions lazy, industry players shared their thoughts on the latest developments.
An ‘unacceptable’ approach to regulation
According to Kristin Smith, the CEO of the Blockchain Association, while the SEC’s actions are expected, it’s still unacceptable. Smith explained that:
“The SEC doesn’t make the law. Indeed, this approach to regulation is unacceptable, but it is what we have come to expect from the SEC and its anti-crypto stance.”
The executive highlighted that while the industry and the U.S. Congress are working to develop effective regulation, the SEC “continues to distract from substantive policy efforts.” The executive believes that by listing assets this way, the SEC is trying to circumvent formal rulemaking processes and deny public engagement.
Meanwhile, Paolo Ardoino, the chief technology officer of stablecoin issuer Tether, believes companies’ complaints against the SEC should be listened to. According to Ardoino, the uncertainty of rules and guidance in the U.S. is becoming a common theme, even among the country’s biggest crypto supporters.
Turbos Finance CEO Ted Shao also echoed Smith’s sentiment. Shao says this is “not the direction Web3 developers want to see.” The executive believes the SEC showed that it’s against the whole Web3 space, as they are also coming after top projects, not just centralized exchanges.
Driving crypto players abroad and weakening consumer confidence
In addition to the SEC’s actions being unacceptable, other professionals working in the space believe that the effects of this recent move include pushing crypto players to more crypto-friendly jurisdictions and weakening consumer confidence in crypto within the United States.
Insider Intelligence crypto analyst Will Paige said that the recent suits highlight the SEC’s intent to police the space through enforcement in the absence of a regulatory framework. According to Paige, this could potentially knock down the “already weak consumer confidence in cryptocurrencies” in the country.
Ben Caselin, the chief strategy officer at crypto exchange MaskEX, believes that while this is a case against Binance, it may have implications for other players in the United States. The former AAX executive explained that this can “open up more opportunities for other jurisdictions, such as Hong Kong, Dubai or even El Salvador, to drive innovation and attract capital and talent.”
Oscar Franklin Tan, the chief legal officer of nonfungible token protocol Enjin, agrees with the sentiment. According to Tan, the world will not wait for the U.S. to make up its mind on crypto. Tan explained:
“The SEC actions only drive talent and innovation out of the U.S. to countries with clearer rules that support responsible builders. Singapore, in 2020, stated it does not follow the U.S. Howey test. Japan has a clear self-regulatory framework for exchanges.”
The executive believes that “progressive countries” will reap the benefits, especially now that explosions in artificial intelligence and extended reality highlight the need for blockchain and genuine digital ownership.
Doubts cast on SEC’s fairness and motivations
While some expressed their beliefs on the potential effects of the SEC’s lawsuit against Binance and Coinbase, other crypto professionals explored the motivation and fairness of the SEC’s move.
According to David Schwed, the chief operating officer of Blockchain security firm Halborn, the SEC’s mandate is to ensure the safeguarding of investors. Schwed believes that this can be done through clear regulations, not through enforcement actions. The executive added that SEC Chair Gary Gensler’s motivations may be skewed. “It seems to me that his personal ambitions and the need to validate his stance have now superseded his core mandate,” he explained.
Alex Strześniewski, the founder of the decentralized finance protocol AngelBlock, described the SEC’s actions as “lazy.” The executive believes that it does not drive proper regulation forward. He explained:
“It’s like a school teacher berating you for giving the wrong answers but failing to give any explanation beyond that. I also don’t believe that the SEC does, in fact, have jurisdiction over everything they’re claiming to.”
Meanwhile, Tim Shan, the chief operating officer at decentralized exchange Dexalot, expressed mixed feelings about the lawsuits and said the SEC’s actions are unfair to the community.
“They’ve provided very little clarity or guidance to the crypto community. They are regulating through the courts, which is really quite unfair and not the right way to regulate/govern,” he said.
Impact on prices of crypto stocks and altcoins
Stephan Lutz, the CEO of crypto trading platform BitMEX, shared insights on the potential effects of the SEC’s crackdown on exchanges on the market. In the short-term, Lutz said that there would be a downside pressure on the prices of crypto stocks, altcoins and valuations of crypto startups based in the US. Lutz explained that:
“Investors are likely to keep funds in crypto but divest towards Bitcoin because these are unlikely deemed as a security, or stablecoins due to their correlation with fiat.”
In the medium and long-term, Lutz believes that exchanges will be cautious when dealing with customers based in the US and providing access to what the SEC is claiming to be securities. The executive also expressed frustration that regulators are “taking the issue of securities definition to the courthouse once again,” instead of offering clearer guidelines.
BitMEX has notably had its share of troubles with regulators in the US. In 2021, the trading platform agreed to pay up to $100 million to resolve a case with the Commodity Futures Trading Commission (CFTC) and the Financial Crimes Enforcement Network (FinCEN). In 2022, a New York court ordered BitMEX founders to pay $30 million in civil penalties.
Analysts at the market intelligence platform CryptoQuant have identified concerning signals from on-chain valuation metrics that suggest bitcoin (BTC) may be at the onset of a bear season.
According to a CryptoQuant report, bitcoin’s correction is not unusual in terms of magnitude because such dips have been witnessed in past bull runs. However, the state of all valuation metrics suggests the leading cryptocurrency is either at deep value levels or in a deeper correction phase than typically seen during bull seasons.
BTC in Bearish Territory?
CryptoQuant said all Bitcoin valuation metrics indicate that the market is in bearish territory. The Bitcoin Bull-Bear Market Cycle Indicator is at its most bearish level in this cycle, while the Market Value to Realized Value (MVRV) Ratio Z-score has plunged below its 365-day moving average.
The MVRV Ratio Z-score’s fall below its 365-day moving average indicates that bitcoin’s upward price momentum has become weak. Historical data reveals that when the MVRV Ratio and the Bull-Bear Market Cycle Indicator fall to their current levels, then BTC is either in a sharp correction or at the brink of a bear market.
Bitcoin demand is not left out. This metric is still in contraction territory, and whales have reduced their accumulation pace. Last week, Bitcoin’s apparent demand contracted at its fastest pace since July 2024, plummeting swiftly by 103,000 BTC. Besides whales, other large investors are seeing their annual rate of BTC accumulation fall significantly—from 368,000 BTC in January to 268,000 BTC today.
BTC Could Fall to $63K
With the growth of large investors’ holdings falling, U.S.-based spot Bitcoin exchange-traded funds (ETFs) have become net BTC sellers – a trend that sharply contrasts their purchases in the same period last year.
CryptoQuant found that spot Bitcoin ETFs have cumulatively bought BTC worth $0.7 billion so far this year, a far cry from the $8.7 billion purchases seen this time in 2024. This indicates that these funds have been net sellers this year, putting additional downward pressure on bitcoin’s price.
Additionally, the volume of BTC flowing into the American crypto exchange Coinbase from other trading platforms has fallen below the 90-day moving average. This is evident in CryptoQuant’s Inter-exchange Flow Pulse, which has been in a period of price correction since February 13 while BTC was trading around $96,000. Coins often flow into Coinbase when demand is high.
Meanwhile, CryptoQuant analysts think BTC could plummet to $63,000 if it fails to hold the support level between $75,000 and $78,000. The asset was worth $82,000 at press time, and $63,000 represents the Trader’s minimum On-chain Realized Price minimum band.
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Cryptocurrency
Toncoin (TON) Skyrockets by Double Digits, Bitcoin (BTC) Holds Steady at $84K (Weekend Watch)
Bitcoin’s price performance over the weekend continues in a calm fashion as the asset has remained close to the $84,000 level.
Most altcoins are slightly in the red on a daily scale, aside from Ton after positive news around Telegram’s founder, Pavel Durov.
BTC Stands Still at $84K
It was a highly volatile week for the primary cryptocurrency from the get-go. It all started on Monday with a six- grand price drop that drove the asset south to $80,000. Although it managed to defend that level at first and bounced off to $84,000, the bears kept the pressure on and it lost it on Tuesday.
At the time, the cryptocurrency plunged to a four-month low of under $77,000. The bulls finally intercepted the move and didn’t allow another price breakdown. In fact, BTC jumped above $80,000 and spiked to $84,000 on Thursday.
It was first stopped there despite the favorable US CPI data for February. Nevertheless, it shot up on Friday and jumped past $85,000 for the first time since the previous weekend. It has lost some ground since then, and it trades at around $84,000 for most of the weekend.
Its market capitalization remains stuck below $1.670 trillion, while its dominance over the alts is still just shy of 59%.
TON on the Rise
The biggest news within the cryptocurrency community yesterday came from France and concerned Telegram’s founder, Pavel Durov. After being arrested in August 2024, the French authorities finally returned his passport on Saturday, as announced by the TON Foundation.
Expectedly, Toncoin exploded immediately after the news broke by over 20%. Although it has retraced slightly since yesterday’s peak, it’s still up by double digits now.
MNT is the other notable gainer from the larger-cap alts, having surged by 8%. AVAX is up by 3%, while most other crypto assets are in the red, including XRP, DOGE, LTC, and ADA.
The total crypto market cap has shed about $30 billion since yesterday’s peak and is below $2.840 trillion now.
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.
Bitcoin has recently rebounded from the critical $78K support level and is now testing a significant resistance at $85K.
If it manages to reclaim this level, the next target will likely be the $90K region.
Technical Analysis
By Shayan
The Daily Chart
BTC’s recent price action has seen a slight rebound from the ascending wedge’s lower boundary, which aligns with the 0.618 Fibonacci retracement level at $78K. This confluence of support levels strengthens the likelihood of buyers defending this area in the mid-term.
However, Bitcoin has now headed toward a key resistance zone at $85K, which coincides with the 0.5 Fibonacci retracement level and the 200-day moving average. While a breakout above this region could trigger a surge toward the $90K threshold, the presence of sellers at this level suggests that further consolidation is the more probable short-term scenario.
The 4-Hour Chart
On the lower timeframe, Bitcoin’s recent upward movement has brought it close to the upper boundary of the descending wedge at $85K. This pattern often signals a bullish market rebound if the price breaches the upper trendline. If Bitcoin sustains its momentum and successfully breaks above this resistance, a rally toward the $90K level will likely follow.
However, given the current market conditions and the lack of strong buying demand, further consolidation within the wedge remains the more likely short-term outcome.
On-chain Analysis
By Shayan
The Realized Cap UTXO Age Bands (%) is a valuable on-chain metric that illustrates the distribution percentage of Bitcoin based on the duration they have been held.
According to the latest data, the percentage of coins held for 3 to 6 months has been rising rapidly, mirroring the accumulation patterns observed during the prolonged correction in the summer of 2024. This trend highlights a holding sentiment, where investors refrain from selling their Bitcoin despite the current market correction.
Historically, this type of resilience among Bitcoin holders has played a crucial role in forming market bottoms and igniting new uptrends. As long-term holders continue accumulating, the available supply in circulation decreases, making Bitcoin more scarce. When demand eventually picks up, this supply squeeze often leads to price surges, pushing Bitcoin toward new record highs.
Given this behavior, the data suggests that Bitcoin’s current market phase is more of a healthy correction rather than the start of a prolonged bear market. Many market participants still view Bitcoin as a long-term valuable investment, reinforcing the potential for an eventual bullish continuation.
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.
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