Coinbase Global Inc coin Hit Hard As Sec Sues Binance Shares Dip 10

Coinbase Global, Inc. (COIN) Hit Hard as SEC Sues Binance, Shares Dip 10%

Coinbase Global, Inc. (NASDAQ: COIN) experienced a significant drop of 10.3% in its shares following breaking news that the Securities and Exchange Commission (SEC) had filed a lawsuit against Binance for allegedly violating federal securities law. The lawsuit has raised concerns about the regulatory future of cryptocurrencies in the United States.

The senior market analyst at foreign exchange Oanda, Edward Moya, stated, “Coinbase shares are down sharply as it looks like U.S. regulation will deem many cryptos as securities. Coinbase wants regulatory clarity, and it seems the SEC is going to cripple large parts of the cryptoverse.”

Coinbase’s stock initially fell by more than 5% right after the news of the lawsuit was released, and the decline continued afterward. In parallel, the price of Bitcoin (BTC) dropped over 5%, falling below $26,000. This downward trend also affected other companies invested in Bitcoin, with MicroStrategy Incorporated (MSTR) experiencing an almost 9% decrease in its shares. Similarly, the shares of bitcoin mining stocks, such as Riot Platforms, Inc. (RIOT), Marathon Digital Holdings, Inc. (MARA), and Bitfarms Ltd. (BITF), dropped more than 6-9%.

The SEC accuses Binance of offering unregistered securities and staking services to the general public, among other allegations. This legal action against Binance reflects a growing focus by U.S. lawmakers on enforcing regulations within the cryptocurrency industry.

Earlier in March, Coinbase had received a warning from the SEC about potential enforcement action tied to its listing of unregistered securities. In response, Coinbase has strengthened its presence in Canada, as the country’s clearer rules for crypto firms make it easier to operate compared to the United States.