The cryptocurrency market is struggling as the U.S. Securities and Exchange Commission (SEC) cracking down on crypto-focused companies. In the last few months, over half a dozen crypto exchanges have faced a lawsuit that forced them to exit the U.S. market.
The last few days saw a massive downfall in crypto market capitalization and trading volume which is a result of the SEC lawsuit against Coinbase and some other crypto market leaders.
The lawsuit against Coinbae alleges that the crypto exchange had been selling unregistered securities for a long time and has earned Billions in profit by selling the tokens.
Some leading tokens majorly affected by SEC actions are Cardano, Solana, Gala, Shiba Inu, Dogecoin, Pepecoin, and The Sandbox among others. A massive 5-40 percent decline is seen following the drastic action against exchanges.
SEC Chair and Crypto Market: A Bitter Relationship
Gary Gansler is known for his critical comments on the crypto market. It is not the first time that the SEC has targeted exchanges for selling unregistered securities. It is important to note that there are no appropriate rules and regulations for the crypto industry; the SEC defames crypto-focused companies and exchanges.
According to CoinMarketCap, Bitcoin slipped by over 4% in weekly trading sessions, and it was the first time after January 2023 that BTC showed a massive decline.
At press time, BTC was trading at $25,797 with a 24-hour trading volume of $15 billion. Some close sources reveal that in the coming times, the market cap of Bitcoin will fall as Robinhood has around $1.3 Billion worth of Altcoin, including Ethereum and Dogecoin in BTC, and might flood the market soon.
In the last few weeks, the first position in the market in terms of trading volume has been acquired by stablecoin USDT; earlier, the position was held by Bitcoin.
Ethereum too recorded a sharp price drop. It slipped more than 7% in weekly sessions. The declining market is an opportunity as the decreasing price of some popular tokens might lure users into holding or trading more tokens, ultimately boosting prices.
According to Kevin O’Leary, crypto is a “radioactive waste” for institutional investors till the giants of crypto agree with the SEC. He added that investors would not invest in the crypto industry or crypto-focused projects till the war between regulators and companies is resolved.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/06/11/crypto-market-capitalization-declines-after-secs-legal-actions/