The prices of Bitcoin, Ether, and other top cryptocurrencies dropped marginally just after the Securities and Exchange Commission sued U.S. crypto exchange Coinbase—just one day after the agency filed another blockbuster lawsuit against Binance, the world’s largest cryptocurrency exchange.
Bitcoin was immediately down about 1%, Ether 0.7%, and BNB, Binance’s digital currency, dipped to a low of 1%. Bitcoin began the day at $25,700 and dropped to a low of $25,400. The total market capitalization of all cryptocurrencies sagged about 0.7%.
In the lawsuit against Coinbase, the SEC specifically detailed “a non-exhaustive list” of 13 cryptocurrencies that it argued were securities, including pages of details outlining these tokens’ releases. The most prominent include Solana (SOL), Cardano (ADA), and Polygon (MATIC). After the SEC’s lawsuit became public, SOL was down approximately 2%, ADA 0.6%, and MATIC 2.6%.
“From the time of their first offer or sale, each of these Crypto Asset Securities was
offered and sold, and continues to be offered and sold today, as an investment contract and thus a
security,” wrote the SEC.
The depression in the market mirrors the price action seen on Monday, when the SEC sued Binance, as both cryptocurrencies and the share prices of publicly traded crypto companies, including Coinbase, took a hit.
In its suit against the U.S. crypto exchange, the SEC alleges Coinbase was operating as a broker, national securities exchange, and clearing agency without registering with the agency.
“You simply can’t ignore the rules because you don’t like them or because you’d prefer different ones: The consequences for the investing public are far too great,” Gurbir S. Grewal, director of the SEC’s Division of Enforcement, said in a statement.
“The SEC’s reliance on an enforcement-only approach in the absence of clear rules for the digital asset industry is hurting America’s economic competitiveness and companies like Coinbase that have a demonstrated commitment to compliance,” said Paul Grewal, Coinbase’s chief legal officer, in a statement shared with Fortune.
