![]() ![]() The cryptocurrency market, known for its interconnectedness, can experience reverberations when major exchanges face hurdles. The impact of these developments extends beyond Binance.US itself. As a result, investors may be willing to pay a premium for Binance.US coins as they navigate the temporary inconveniences associated with fiat transactions. These issues have hampered the seamless flow of funds between traditional currencies and digital assets on the exchange. This premium reflects a perceived risk associated with holding these assets due to the potential legal ramifications.Īdditionally, Binance.US has encountered operational challenges with its fiat gateways, causing disruptions in the deposit and withdrawal processes. The exchange’s involvement in litigation proceedings has created an atmosphere of uncertainty, prompting some traders to demand a premium for Binance.US coins. Let’s delve into the factors behind these price premiums and their potential implications for the broader market.Īmidst the ongoing legal concerns faced by Binance.US, investors have become increasingly wary. This phenomenon has raised eyebrows within the crypto community and has led to speculation about the underlying causes. Shares of Coinbase were last down 1.9% to $53.85.Ĭoinbase did not immediately respond to a request for comment.ĭon’t miss out on ET Prime stories! Get your daily dose of business updates on WhatsApp.In recent times, Binance.US, a well-known cryptocurrency exchange, has found its coins trading at higher prices than other platforms. ![]() On Thursday, ratings agency Moody's changed its outlook of Coinbase to "negative" from "stable," citing the potential impact of the SEC's lawsuit. The Binance and Coinbase SEC lawsuits "introduced a cloud of uncertainty around these assets and, as a result, our team has decided to end support for them," the company tweeted. Robinhood said it would be removing those three coins effective June 27. crypto exchanges are likely to be in the firing line as a result of this week's lawsuits, which expand the number of cryptocurrencies that the SEC has identified as securities to include some commonly traded tokens, such as Solana, Cardano and Polygon. EDT (1600 GMT) on Friday, investors had pulled more than $31 million from Binance.US in the prior 24 hours, according to data firm Nansen.īAM Trading, Binance.US's operator, holds customers' funds with California-based Axos Bank, according to a letter from lawyers for BAM Trading to the SEC dated May 26, which was made public by the SEC on Tuesday.Īxos did not immediately respond to a request for comment.īinance.US had struggled to find banking partners after the failure of Signature Bank, the Wall Street Journal reported in April.īinance.US said crypto-denominated trading, deposits, withdrawals and "staking" - where users deposit cryptocurrencies for use in blockchain transactions - would remain fully operational.Ĭrypto companies started out in a regulatory gray area, but the SEC under Chair Gary Gensler has steadily asserted its jurisdiction over the industry, arguing most tokens are securities and should be subject to the same disclosure rules. On Thursday, Binance.US said the SEC action had created "challenges" for its financial services providers and that the exchange would no longer accept dollar deposits as part of plans to change to a "crypto-only exchange."Īs of 12 p.m. Binance.US called the motion "unwarranted." The SEC expressed concern that the company could move those funds offshore. dollar bank accounts, according to the agency. assets, including customer assets that total more than $2.2 billion held in crypto and some $377 million in U.S. ![]() In a subsequent filing on Tuesday, the SEC asked a federal court to freeze Binance's U.S. It has said it would defend its platform "vigorously," claiming the SEC was limited in reach as Binance was not a U.S. Binance did not immediately reply to a request for comment. ![]()
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