The US Commodity Futures Trading Commission’s (CFTC) Binance lawsuit has caused market volatility. Now, another US regulator, the SEC, may also sue the giant Bitcoin exchange.
After CFTC, SEC scrutinizes giant Bitcoin exchange
Speaking about the latest moves towards cryptocurrency regulations in the US, XRP lawyer John Deaton reported that many projects could be at risk due to the lawsuit. Deaton thinks that some major cryptocurrencies, such as Ethereum, may qualify as investment contracts and therefore be classified as securities.
Stating that the CFTC’s view of the classification of major cryptocurrencies as commodities can set an example with the recent lawsuit, Deaton stated that any altcoin can be seen as an investment contract, giving the example of Ethereum. According to the lawyer, the SEC is preparing to sue Binance to apply pressure in this direction…
Deaton predicted that the SEC could file a lawsuit against Binance to classify Ethereum as a security. On Twitter during the day, he stated that the CFTC and SEC can be uploaded to Binance via Ethereum:
The CFTC may view ETH as a commodity against Binance, and we will likely see the SEC file a lawsuit against Binance alleging that it is using ETH as a security related to any ETH-related staking/returns.
Why is Binance on trial?
According to the statements, Binance’s activities involve tax evasion and US authorities are expected to take aggressive and swift action. Binance has many subsidiaries around the world and is controlled by CEO Changpeng Zhao. cryptocoin.com We quoted CFTC chairman Rostin Behnam as saying that there is clear evidence to prosecute Binance.
The CFTC sued Binance for non-compliance, claiming it violated commodity laws. The CFTC alleges that Binance violated federal law and violated commodity exchange and law and controlled foreign company rules seven times.
Large fund outflow started from the giant Bitcoin exchange
Following the lawsuit filed by the CFTC, Binance experienced a net outflow of $736 million. In the last 24 hours, $ 861 million inflows to Binance, while $ 1 billion 598 million outflows were seen. In Binance USD (BUSD), there was a net outflow of 185 million dollars.
While some analysts speculate that it may be preparing for a transition from BUSD to an alternative stablecoin, pressure from US regulators on Binance continues to undermine confidence in the industry.
At the time of development, Bitcoin (BTC) is trading just above the critical support $27,000. It dropped as low as $26,677.82 on the day.
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