Just days after the US Securities and Exchange Commission (SEC) sued cryptocurrency exchanges Binance and Coinbase for Sale of unregistered securitiesCrypto companies are already dealing with the fallout.
Binance, which was sued by the Securities and Exchange Commission on Monday, announce(Opens in a new tab) Thursday evening that the cryptocurrency exchange will suspend deposits in US dollars. Withdrawals of US dollars will also be suspended “as soon as possible” on June 13.
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“We encourage clients to take appropriate actions with the US dollar,” Binance said in its statement. Basically, if you have US dollars in your Binance account, move your funds somewhere else as soon as possible because your assets are frozen.
Binance blamed the SEC for “creating challenges for banks” with which Binance partners, leading to “pausing cash withdrawal channels” with these banking partners. While the SEC sued both Binance and Coinbase this week for selling unregistered securities, the regulatory agency also went further with Binance, alleging that the cryptocurrency exchange engaged in “market manipulation and fraud.”
After the Binance announcement, the dominoes continued to fall.
The popular stock trading app Robinhood announce(Opens in a new tab) on Friday that the company will delist all cryptocurrency tokens traded on its platform that the SEC has classified as unregistered securities. According to Robinhood, it will end support for crypto tokens Cardano (ADA), Polygon (MATIC), and Solana (SOL) after June 27.
Users can buy and sell these tokens until then, and they can also transfer these tokens to other crypto wallets. However, after this date, any account that holds Cardano, Polygon, or Solana in their Robinhood account will automatically sell the tokens and credit the funds.
Also on Friday, cryptocurrency exchange Crypto.com(Opens in a new tab) It announced that it would shut down one of its services: Institutional Exchange. In a statement provided to the cryptocurrency media outlet, Crypto.com claimed(Opens in a new tab) The decision was made due to “lack of demand due to the US market landscape.”
For now, Crypto.com(Opens in a new tab) It does not plan any changes to its retail exchange and will continue to operate in the United States. The company’s now-closed institutional exchange provided services to institutional investors such as pension funds, mutual funds, and college endowments – all institutions that would potentially be Turn off by crypto due to the rampant market downturn over the past 12 months.