This Week in Crypto
June 9, 2023
The entire crypto market has been in a commotion due to the recent filings by the US SEC, as it listed a few assets as securities and proceeded to sue Binance and its CEO, Changpeng Zhao (CZ). With a large sense of uncertainty and the crypto market preparing to go to war against the SEC, we are taking a look into the major headlines of the week.
Key Points
- US SEC Lists Major Assets as Security
- US SEC Sues Binance & Coinbase, Applies for Asset Seizure
- MXC Prepares for Incentivized Testnet
The United States Securities and Exchange Commission (US SEC) released a report saying that major assets in the crypto industry are securities, and therefore within the jurisdiction of the SEC. The assets listed are BNB, BUSD, SOL, MATIC, AXS, COTI, ATOM, CHZ, NEAR, FLOW, ICP, VGX, DASH, NEXO, ADA, FIL, SAND, and MANA. All of these assets being listed as securities are defined by the SEC’s ongoing lawsuit against Binance and Coinbase, and thus it is difficult to argue that the US SEC has determined the fundamental nature of those tokens as securities.
Naturally, this bombshell announcement sent a ripple effect throughout the entire crypto market, with mentioned assets crashing in price. Since then, the overall market has witnessed relative recovery. We recommend that traders pay extra attention to the current regulatory framework, and refrain from making large, speculative trades until the dust has been settled.
US SEC Sues Binance & Coinbase, Applies for Asset Seizure
The US SEC has additionally sued Binance and Coinbase for allegedly mishandling user funds, accusing them of removing user funds without approval for personal gains. While Binance and Coinbase refute this heavily, questions were raised as to the legitimacy of the claim as SEC did not sue FTX, while have approved the IPO of Coinbase. Meanwhile, the SEC has requested to seize assets on Binance, resulting in a moderate increase in the amount of withdrawal from Binance.
In light of the current situation, Binance has halted USD deposits and withdrawals from Binance US. This has resulted in a moderate loss of confidence in BNB, as the price has dipped slightly. Speculative traders should remain aware.
MXC Prepares for Incentivized Testnet
Now, for some good news. Readers of This Week in Crypto may already know that since MXC’s decision to launch its own zkEVM on Arbitrum and the Wannsee testnet is underway. Soon, MXC is launching an incentivized Testnet in order to educate the community and the users about how the blockchain works, and how various dApps can be built on top. The incentive will be in the form of a token airdrop, provided in the form of a point system.
Stay tuned for more updates, as you do not want to miss out on this major milestone.
