CoinGecko says SEC lawsuits against Binance and Coinbase sent crypto prices tumbling
The SEC filed a lawsuit on June 5 against Binance and on June 7 against Coinbase, accusing both exchanges of violating securities laws by offering certain cryptocurrencies as securities for trading.
As two of the most prominent exchanges available to users today, CoinGecko reports the detrimental impact of this news on cryptocurrency prices.
Varying degrees of decline
CoinGecko shares the impact of the SEC’s lawsuit on cryptocurrency prices, stating that the announcement of the lawsuit had a notable effect on listed cryptocurrencies, with varying degrees of decline.
The Sandbox (SAND) experienced the largest drop, falling by -11.4% on June 6 and further plummeting by -35.0% by June 12, from $0.59 to $0.39. SAND was mentioned in both lawsuits as it is available for trading on Binance and Coinbase.
Among the top 10 cryptocurrencies by market capitalization, significant drops were observed. Binance Coin (BNB), the fourth-largest cryptocurrency, initially fell by -9.4% following the lawsuit and subsequently experienced a -23.0% decrease by June 12, with the price dropping from $305.57 to $235.20 during that period.
Similarly, Cardano (ADA), the eighth-largest token by market capitalization, witnessed a -7.0% drop on June 6 and ended June 12 with a significant decline of -27.9%, as the price of ADA decreased from $0.38 to $0.27.
Cryptocurrencies renamed securities
As part of the June 5, 2023 announcement, the SEC identified 19 cryptocurrencies as securities, resulting in notable price changes between June 5 and 12. Among the affected cryptocurrencies, Binance Coin (BNB) experienced a significant decline of -23.0%, while Cardano (ADA) plummeted by -27.9%.Â
At the time of writing, the global cryptocurrency market cap experienced another decrease of 1.09% over the past day, reaching a total of $1.06 trillion.
However, despite this dip, the market volume of cryptocurrencies surged by 16.60% within the last 24 hours, totaling $21.06 billion. A significant portion of this volume, amounting to $1.48 billion, was contributed by decentralized finance (DeFi) projects, representing 7.00% of the total crypto market volume.
Although the impacts of regulation remain uncertain, it is hard to say what the ongoing impact will be on the market, although reports suggest that prices are stabilizing.
