SEC lawsuit against Binance, Binance USA and its CEO Zhao and "Red" market.

SEC lawsuit against Binance, Binance USA and its CEO Zhao and "Red" market.

Binance is the latest Crypto Exchange that is now facing the ire of the US SEC and SEC accuses Binance and its affiliated companies mishandled the funds, lied to the customers, and they operated illegally in the US. I do not want to go in-depth as the accusation list has multiple points and Binance being a wealthy crypto Exchange, having its own token BNB at fourth position in market cap will be having no dearth of the fund to fight this battle in court, and as well as off the court.

Most importantly, in alleging they also marked 12 Cryptocurrency as securities that include BNB (BNB), Binance USD stablecoin (BUSD), Solana (SOL), Cardano (ADA), Polygon (MATIC), Filecoin (FIL), Cosmos Hub (ATOM), The Sandbox (SAND), Decentraland (MANA), Algorand (ALGO), Axie Infinity (AXS,) and Coti (COTI) and look like SEC can add further more tokens in this list.

Source

By seeing AXS in this list, I am wondering if SEC can claim other gaming tokens as securities in the near future if SEC is just furious that these tokens were getting traded illegally as per US law by Binance or if they have an issue with Binance way of trading them. Though I am owning none of these tokens as such which I should get worried about (maybe some $10 worth of MATIC and BNB all in my own metamask wallet.). My worry is more about if they ay SPS (Splinterland's Governance token ) as security and starts imposing restrictions.

Anyways, the market has responded with the price of all cryptocurrencies going down including Bitcoin but I feel it can come up as I do not see SEC ordered Binance to shut its operation immediately, and nor does it look like Binance plans to do so. Binance already responded that they are going to fight these charges and these charges are not new to Binance as similar charges were pressed by "Commodity Futures Trading Commission" again Binance in March.

Not sure if this regulation will help or not and how much Binance wilfully evaded the law but it is important that we should not be keeping funds on the Exchanges and should be keeping them in our wallets and should take every step to safeguard our crypto.

Hopefully, the market might recover or it can dive if users do want to keep BNB (i.e now fourth largest in market cap) and BUSD (which is 15 largest in market cap ), overall having 50 Billion in market cap.
Not only market cap of these coins are considerable but negative sentiment against the top Exchange can have ripple effects too as Coinbase's share has dipped 12%.

Posted Using LeoFinance Alpha