In the midst of the ongoing regulatory scrutiny faced by leading cryptocurrency exchanges Coinbase and Binance, long-term Bitcoin holders have displayed remarkable resilience. Glassnode, a prominent crypto market analytics provider, has revealed that these holders remain unpertubed by the uncertain regulatory cloud, with only a minute fraction of their supply being sent to exchanges. The information provided by Glassnode a explores the potential implications for the future of Bitcoin amidst the lawsuits.
Recently the U.S. Securities and Exchange Commission (SEC) lodged a lawsuit against cryptocurrency exchange platform Binance and its founder, CZ, for alleged violation of U.S. securities rules. On the subsequent day, SEC proceeded to file charges against Coinbase at a federal court in New York.
The SEC expresses that Binance-related tokens such as BNB and BUSD, alongside several other tokens including Solana’s SOL, Cardano’s ADA, and Polygon’s MATIC, are indeed securities. Apart from these, the SEC argues that other crypto assets traded on Binance.com and Binance.US, including Filecoin’s FIL, Cosmos’ ATOM, Sandbox’s SAND, Decentraland’s MANA, Algorand’s ALGO, Axie Infinity’s AXS, and Coti’s COTI tokens, were “offered and sold as securities.”. In its lawsuit against Coinbase, the SEC identified 13 cryptocurrencies which included the previously classified SOL, ADA, MATIC, SAND, and AXS, and six more: Chiliz (CHZ), Flow (FLOW), Internet Computer(ICP), Voyager Token (VGX), and Nexo.
With the allegations brought against both entities especially as it concerns the trading and support for unregistered crypto securities, the exchanges are bound to delist the concerned assets, a move that will exempt Bitcoin
This news event will continue to be a focus of the cryptocurrency market, as the legal challenges and their potential consequences could shape the landscape of cryptocurrency regulation and adoption in the future.