Navigating the SEC Storm

GM Readers!📪 It's BitDegree Insider, and what about a quick Web3 espresso?

⭐️Today's selection:

• 🔥Aftermath of The SEC Actions
• 🧋Wednesday Bubbles
• 👌Selected Meme of The Day
• 📰Bite-Sized News

THE SEC & THE AFTERMATH

So, okay. Yesterday the news broke out. The SEC sued Binance & Coinbase.

News like this don't come out every day. So, naturally, such updates change the vibe really quickly.

Here's how different market players have responded to the news.

Cathie Wood's Ark Investment Management Focuses On Coinbase

Cathie Wood's Ark Investment Management increased its investment in Coinbase, the publicly traded crypto exchange, following a lawsuit filed by the SEC against the company.

You see, the lawsuit delivered a blow to the company's share prices. So, Cathie Wood didn't miss this opportunity.

Ark purchased 419,324 shares of Coinbase, amounting to around $21.6 million.

This purchase brings Ark's total holdings in Coinbase to 11.44 million shares, valued at approximately $590 million.

So, that's one way of showing support and belief that, in the long-run, Coinbase is getting out of the water dry.

Coinbase may only account for 6.5% of global volume at the moment, but its market share in the United States is a whopping 53%.

ROBINHOOD UPDATES

As we know by know, the SEC and their lawsuits allege that certain tokens listed by these exchanges (Binance & Coinbase) are unregistered securities.

But this concerns not only the exchanges in question.

Robinhood Markets Inc. is reevaluating its cryptocurrency offerings in response to recent actions taken by the Securities and Exchange Commission (SEC) against leading digital asset trading platforms.

Dan Gallagher, the company's legal chief and a former SEC commissioner, informed Congress on Tuesday that Robinhood is actively reviewing the regulator's analysis to determine its next steps.

Although Robinhood provides access to a more limited selection of 18 crypto assets compared to Coinbase's extensive offerings, following the SEC's lawsuits, Solana, Polygon, Cardano, and others might be delisted from the platform soon.

The Wednesday bubbles section will continue with a comparison of how the market reacts to the prices of tokens recognized by the SEC as securities and other tokens.

SEC Wants to Freeze Binance US Assets

 There's one more bold move from the side of the SEC.

The Securities and Exchange Commission has filed an emergency motion requesting a judge to freeze the assets of Binance.US.

The SEC also seeks the repatriation of assets belonging to Binance.US customers, whether in fiat currency or cryptocurrency, requiring the transfer of those assets back to the United States.

If granted, the motion would require the holding companies and Binance CEO Changpeng Zhao to justify why a preliminary injunction should not be imposed.

The SEC argues that these measures are necessary to safeguard customer assets and prevent the dissipation of available assets.

Besides that, SEC also claims that there are two entities controlled by Changpeng Zhao Sigma Chain and Merit Peak which acted as channels for the improper mixing of billions of dollars in customer funds with Binance's own funds.

Therefore, according to the SEC, the emergency restraining order was necessary to "prevent the dissipation of available assets for any judgment, given the Defendants' years of violative conduct, disregard of the laws of the United States."

Volumes on DEX have grown by 400%

In the last 2 days, trading volumes on PancakeSwap and Uniswap have jumped by $792 million. On Curve, this figure has increased by about 328%.

All this is happening against the backdrop of capital outflow from Binance and Coinbase. Let's hope that the SEC will not also litigate with decentralized exchanges.

So… We'll see what happens next. But obviously… The action is only about to begin.

TL;DR: Ark Investment has purchased additional shares in Coinbase. Robinhood is reconsidering its cryptocurrency offerings, potentially delisting certain tokens. The SEC is also seeking to freeze Binance US assets. Amidst this, trading volumes on decentralized exchanges like PancakeSwap and Uniswap have significantly increased.

WEDNESDAY BUBBLES

Here's how the market has responded to this volcanic news (in comparison with last week's update)

SELECTED MEME OF THE DAY

BITE-SIZED NEWS

• French Fashion Brand Louis Vuitton to Introduce $40,000 Non-Fungible Tokens. Valued at roughly $41,712 (€39,000) each.
• DEX See Trading Volumes Skyrocket Amid SEC Actions Against Coinbase and Binance. The data reveals a sharp increase in daily trading volumes exceeding $792 million from June 5th to June 7th
• Ex-Twitter CEO Sparks Debate Over Ether Being Classified as a Security. Jack Dorsey agreed that Ether (ETH) should be classified as a security.

🌩️ Navigating the SEC Storm