Crypto Market Defies US SEC; Bitcoin, Ethereum, And Coinbase (COIN) Rally

The U.S. Securities and Exchange Commission (SEC) cleared its intention to go after the crypto market. Meanwhile, the crypto industry remains united and disagrees with the SEC for actions against Binance and Coinbase, as Bitcoin and Ethereum, and Coinbase (COIN) prices rebounded. Moreover, there are several differences between Coinbase and Binance lawsuits in relation to charges filed by the US SEC.

Key Differences Between US SEC Charges Against Coinbase and Binance

The US SEC filed 13 charges against Binance and CEO Changpeng “CZ” Zhao, primarily alleging commingling of funds. Charges include operating unregistered exchanges, broker-dealers, and clearing agencies; misrepresenting trading controls and oversight on the Binance.US platform; and the unregistered offer and sale of securities.

Meanwhile, charges against Coinbase include operating an unregistered exchange, broker, and clearing agency, and offering and selling securities in connection with its staking-as-a-service program.

No fraud charges were brought against Coinbase and CEO Brian Armstrong was not named in the lawsuit. Whereas Binance CEO “CZ” was named in the Binance lawsuit for commingling of funds and manipulative trading.

Despite Coinbase being a publicly listed company, the SEC alleges Coinbase failed to register and deprived investors of significant protections, including inspection, recordkeeping requirements, and safeguards against conflicts of interest. SEC also holds Coinbase’s holding company Coinbase Global Inc. (CGI) accountable for certain violations.

Moreover, there was no proposal in Coinbase’s lawsuit to prohibit the firm from engaging in financial-related businesses. Coinbase also received show cause notice from ten states California, Alabama, Illinois, Kentucky, Maryland, New Jersey, South Carolina, Vermont, Washington, and Wisconsin for

US SEC mentioned BNB, BUSD, SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI as securities in the Binance lawsuit. The agency listed SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO as securities in the Coinbase lawsuit.

Also Read: Terra Classic Passes Crucial Proposal To Revive LUNC, USTC Price To $1 After Parity Upgrade

Crypto Market and Coinbase Shares Rise Higher

Bitcoin and Ethereum prices fell below $25.5k and $1800, respectively after the SEC filed the lawsuit against Binance. However, the crypto market defies SEC action against Coinbase and stands together to fight for clarity on crypto rules and guidelines.

BTC price rallied above the $27k level after the Coinbase lawsuit, rebounding from the support at $25.5k. ETH price also jumped higher, with the price currently trading at $1,842.

Coinbase shares rebounded after Cathie Wood’s Ark Invest purchased $21 Million worth Coinbase (COIN) shares. COIN stock price soars over 5% to hit an intraday high of $53.40.

Also Read: Who Will Win, US SEC Or Crypto Giant Binance?