On Monday, the Securities and Exchange Commission (SEC) took decisive action by filing 13 civil charges against Binance, recognized as the largest cryptocurrency exchange globally, along with its CEO, Changpeng Zhao. these charges have been brought forth due to an alleged violation of securities regulations in the United States.
The recent announcement has caused a downward trend across the entire cryptocurrency market, resulting in bootable declines ranging from 5 to 10% for the majority of the aforementioned tokens.
In response to the recent developments, the cryptocurrency market experienced a sudden downward movement, leading to a decrease in the overall crypto market capitalization by approximately 3.7% within the past 24 hours, amounting to $1.09 trillion.
As part of the allegations, it has been claimed that the cryptocurrency exchange made available several securities to the public without proper registration. These securities include not only Binance’s native BNB token and its stablecoin BUSD but also other notable cryptocurrencies such as Solana (SOL), Cardano (ADA), Polygon (MATIC), Coti (COTI), Algorand (ALGO), Axie Infinity (AXS), Filecoin (FIL), Cosmos (ATOM), Sandbox (SAND), and Decentraland (MANA).
Also Read: SEC’s Move: 61 Crypto Tokens Now Classified as Securities
When questioned about the potential regulatory consequences for Sky Mavis, the renowned crater of the highly popular play-to-earn game Axie Infinity, CEO Aleksander Leonard Larsen acknowledged that they are currently examining the matter and stated that, “it doesn’t change much. We are staying the course, building our products.”
Bitcoin, the prominent cryptocurrency, has experienced a significant breakdown below the crucial support level of $27,000 and has now dipped into the $25,000 range. This drop can be attributed to the ongoing battle between the SEC and Binance. The prevailing bearish market sentiment may potentially result in further declines if Bitcoin fails to maintain its position above the $25,000 threshold.
