The announcement of lawsuits by the U.S. Securities and Exchange Commission (SEC) against major cryptocurrency exchanges, Binance and Coinbase, has profoundly impacted the prices of several cryptocurrencies listed as securities. The repercussions of these legal actions sent shockwaves through the market, causing significant declines in the values of prominent digital assets.
In a recent tweet by CoinGecko, a popular analytical firm, the impact of the SEC’s lawsuit on cryptocurrency prices is highlighted:
1/ How did the SEC's lawsuit impact the prices of cryptocurrencies?
— CoinGecko (@coingecko) June 16, 2023
After the SEC lawsuits were announced, the prices of cryptocurrencies listed as securities fell by varying degrees. Here's a look at some notable examples. 🧵
Read the full study: https://t.co/OftmnuXXu6 pic.twitter.com/dtQR82jph2
SAND suffered the most substantial blow among the affected tokens, experiencing a staggering drop of 11.4% on June 6. This downward trend persisted; by June 12, SAND had plummeted by 35.0%. The coin’s dual listing on both Binance and Coinbase likely contributed to the magnitude of the sell-off and subsequent price decline.
Similarly, the fourth-largest cryptocurrency, BNB, faced a severe decline of 9.4% immediately after the lawsuit was announced. By June 12, BNB’s value had plunged by 23.0%, falling from $305.57 to $235.20. The impact of the lawsuit on ADA, currently the eighth-largest token by market capitalization, was also significant, with its value dropping by 7.0% on June 6 and further plummeting by 27.9% by June 12, from $0.38 to $0.27.
The crucial question now is whether these cryptocurrencies would bounce back from their recent declines. The SEC’s legal actions have undoubtedly caused turbulence in the market. However, as cryptocurrency markets have historically demonstrated resilience and the ability to recover from setbacks, investors and enthusiasts alike watch closely how these assets fare in the coming days and weeks.
In this volatile landscape, with time, it would be revealed whether these digital currencies could regain their lost value and restore confidence among market participants.
