Blockchain shares fall 10% after SEC sues Binance.
Shares of blockchain (COIN) fell by 10.3% following the news that the Securities and Exchange Commission (SEC) had filed a lawsuit against Binance for allegedly violating federal securities law on Monday.
The stock initially dropped by more than 5% immediately after the filing was released and continued to decline. At the same time, the price of bitcoin (BTC) dropped by more than 5% and fell below $26,000. Shares of MicroStrategy (MSTR), which holds a large amount of bitcoin on its balance sheet, also fell by almost 9%.
The SEC has accused Binance of offering unregistered securities and staking services to the general public, among other allegations, as U.S. lawmakers tighten enforcement actions against crypto companies.
In March, blockchain itself received a warning from the SEC that it may soon face enforcement action related to its listing of potential unregistered securities. Since then, the exchange has increased its presence in Canada, which it claims has clearer rules for crypto firms than the U.S., making it easier to operate in the country.
- Nansen reports Binance suffered $69M in net outflows in one hour following SEC charge.
- SEC sues Binance and CZ for disregarding rules.
- Spotify reduces staff by 2% and provides severance deal to 200 employees.
Edited by Nelson Wang.
