DeFi trading volumes increase by 444% due to SEC’s crackdown on blockchain and Binance.
The US Securities and Exchange Commission (SEC) has been cracking down on cryptocurrency, but this has had a positive impact on the industry, particularly decentralized finance (DeFi). CoinGecko, a crypto data aggregator, has reported that the top three decentralized exchanges (DEXs) have seen a 444% increase in median trading volume in the last 48 hours.
The combined total trading volume for Uniswap v3 (Ethereum), Uniswap v3 (Arbitrum), and PancakeSwap v3 (BSC) has increased by $792 million since June 5. CoinGecko data also shows a 328% increase for Curve (Ethereum).
The SEC has been targeting major crypto platforms, including Binance, which has seen a significant decrease in net outflow. Blockchain data and research platform Nansen reported that Binance’s net outflow was $778.6 million over 24 hours, with a total outflow of $1.65 billion and an inflow of $871.7 million.
SEC Crackdown on Binance and Blockchain
The SEC has continued to file lawsuits and indictments against crypto companies, including Binance. The commission has accused Binance of mixing up user funds and not doing enough to prevent US customers from using Binance.com. The SEC also claims that Binance may have misappropriated billions of dollars in customer deposits.
- Aave nears launch of GHO stablecoin on Ethereum.
- Defactor tokenizes $100M in bonds for small business lending.
- DeFi aggregation for mass adoption.
In addition to the Binance lawsuit, the SEC has filed a charge against blockchain at a New York Federal Court, accusing the company of conducting business as an unregistered national securities broker and exchange.
DeFi Could Benefit from SEC Enforcement
The SEC’s focus on centralized exchanges could benefit DeFi, as decentralized platforms operate with more autonomy. This period of seeming neglect from regulatory agencies may give DEXs a chance to grow their coffers and increase trading volumes.
