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The United States Securities and Exchange Commission has filed a lawsuit against the world’s leading cryptocurrency exchange – Binance.
The move has had an instant impact on the market, sending prices into a freefall, with Bitcoin dropping below $26K. Now, Arthur Hayes – the co-founder and former CEO of BitMEX – chips in on what might happen to the BTC price next.
The SEC v. Binance
As CryptoPotato reported yesterday, the United States Securities and Exchange Commission filed a lawsuit against Binance for violating securities regulations, among other things. The agency alleged that the native token of the exchange, as well as BUSD, are unregistered securities.
In general, the lawsuit is making the claim that Binance and its CEO – Changpeng Zhao – exercised control over the US branch of the firm – Binance US – and the assets on its platform, despite the pretense of independence from the American entity.
In addition, the Commission is accusing Binance of secretly continuing to service US clients at the international exchange – something that the US Commodities and Futures Trading Commission also alleged in March.
The SEC also claims that an entity controlled by Changpeng Zhao engaged in trading at Binance US with the intention of inflating the valuation of certain assets on the platform and inflating the trading volume.
All in all, the move caused over $300 million worth of liquidated positions across the derivatives markets, sending BTC below $26K and BNB to a 3-month low.
What of the Bitcoin Price?
One question that’s looming at the back of everyone’s head right now is – what will happen to the Bitcoin price? While the answer to that is clearly speculation, one strong opinion comes from the former CEO of BitMEX – Arthur Hayes.
Hayes believes that what’s going on is FUD. He also said that by the end of this summer, the market will move past that. He’s optimistic that there will be a large amount of money printing, which will ultimately push prices up.
The market is down on some binance FUD. But regardless of the catalyst, risk mrkts r on edge cause of the TGA refill. By end of summer, the mrkt will move past that and onto the lg amt of money printing humming along in the background. I have a few shitcoins to buy in the meantime.
Meanwhile, Binance also released a public statement on the matter, accusing the SEC of not prioritizing their investors but instead attempting to obtain jurisdictional ground.
The company also reassured that all user assets on Binance and the Binance affiliate platforms are safe.
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