SEC Sues Binance: Crypto Market Takes Unexpected Turn Down

• The crypto market is down today after the news of the SEC suing Binance and its CEO Changpeng Zhao scares off investors.
• Bitcoin price hit a 60-day low on June 5 at $25,744 as traders worry that a larger price dip is possible.
• Ether ETH $1,833 traded above the $2,100 level after the Shapella upgrade only to be followed by a 7-day low of $1,794 on May 24.

SEC Charges Against Binance

The United States Securities and Exchange Commission led by Chairman Gary Gensler filed 13 charges against Binance entities and Changpeng “CZ” Zhao. The lawsuit alleges Binance blatantly disregarded United States securities laws, enriching themselves to the tune of billions of dollars. In the lawsuit, 12 specific cryptocurrencies were listed as securities including Algorand ALGO $0.14 , Binance USD BUSD $1.00 , Binance Coin BNB $278 , Solana SOL $20 , Cardano ADA $0.348 , Polygon MATIC $0.8084 , Filecoin FIL $4.30 , Cosmos ATOM $10.03 , The Sandbox SAND $0.51 , Decentraland MANA$ 045., Axie Infinity AXS$ 663 and COTI .Binance posted an official response to the lawsuit on Twitter shortly after the SEC’s complaint went public

Price Impact

Right as analysts thought that Bitcoin BTC 25,928 was on the cusp of showing signs of a price breakout, the crypto market took a turn to downside following news from SEC which has lead some analysts to believe that BTC bottom is not yet in .Bitcoin price hit a 60-day low on June 5 at 25,744 as traders worry that larger price dip is possible noting that bitcoin was already struggling with 26600 resistance before SEC made headlines .Ether ETH 1833 traded above 2100 level after shapella upgrade only to followed by 7 day low 1794 on may 24 due to cooling gas fees after memecoin frenzy .

Debt Ceiling Issues

Concerns over debt ceiling weigh heavily risk assets adding further worries for crypto markets .The recent action from SEC adds further mistrust over actual use case for digital asset which seems contradict 2019 statement from Gary Gensler calling algorand great technology .

Reaction From Crypto Community

Crypto community reacting with mix feelings towards this news with one side believing this brings more legitimacy while other see this as attack against decentralized nature of blockchain technology .

Conclusion

Overall crypto market remains bearish until clear direction from regulators are established however recent law suit might open door for more clarity regarding status of digital assets and their future role in global finance system