Saturday, June 22, 2024

SEC Designation Sinks BNB, Cardano, Solana, and Polygon Prices

This week witnessed a significant plunge in the prices of four prominent digital assets as a result of lawsuits filed by the U.S. Securities and Exchange Commission (SEC) against notable crypto exchanges, wherein the SEC classified them as securities.

On the beginning of the week, Binance and its CEO Changpeng Zhao found themselves being sued by the SEC, with Gary Gensler, the head of the federal agency, condemning their actions as “a web of deceit, conflicts of interest, lack of transparency, and deliberate violation of the law.”

Additionally, the regulatory body accuses the leading global crypto exchange of conducting unregistered offers and sales of “crypto asset securities,” including Binance’s native token, BNB.

As of now, BNB is being traded at $264.64, having suffered a decline of over 13% in the past seven days, positioning it as the fourth-largest crypto asset based on market capitalization.

The SEC’s lawsuit also encompasses other tokens deemed “crypto asset securities,” such as Cardano (ADA) and Solana (SOL), which are Ethereum (ETH) competitors, along with Polygon (MATIC), a blockchain scaling solution.

At present, ADA is being traded at $0.325, experiencing a decrease of more than 11% in the past week. SOL is valued at $19.00, down 8%, while MATIC is trading at $0.784, encountering a decline of nearly 12%.

Furthermore, the SEC lodged a lawsuit against Coinbase, a prominent U.S. crypto exchange, on Tuesday, alleging the company of operating as an unregistered securities exchange, broker, and clearing agency. This legal action also categorizes Cardano, Solana, and Polygon as securities.

Read Also: Mike Novogratz Remains Optimistic About Bitcoin and Cryptocurrencies Despite Regulatory Crackdown on the Industry

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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