• The SEC recently filed lawsuits against the two biggest exchanges, Binance and Coinbase.
• On-chain analysis shows that Ether withdrawals from both exchanges have increased since the news broke, with 5% of Coinbase’s ETH balance withdrawn on Tuesday and 3% of Binance’s reserves withdrawn.
• Bitcoin withdrawals have been negligible, with 0.1% of Coinbase’s balance withdrawn on Tuesday.
SEC Suits Against Binance and Coinbase
The Securities and Exchange Commission (SEC) recently filed lawsuits against two major crypto exchanges, Binance and Coinbase. This has sparked a wave of reactions in the crypto space as investors attempt to analyze what this means for their investments.
An on-chain analysis reveals that there have been notable outflows of Ethereum from both exchanges since the news broke. On Tuesday, 5% of Coinbase’s ETH balance was withdrawn while 3% of Binance’s reserves were taken out. In comparison, Bitcoin saw much less activity with only 550 BTC being withdrawn from Coinbase – a negligible amount representing just 0.1% of its total balance.
Prior to the lawsuits, Bitcoin traded at $27,000 but dropped to around $25,500 following the news before rebounding back up again to its current price of $26,800. It is still unclear how this will affect prices in the long run but it seems that investors are taking a wait-and-see approach at this time.
The lawsuit against Coinbase presents an interesting case as it represents one of the first times that a major exchange has been sued by US regulators despite openly striving for clear regulation in recent years – most notably when they floated on the Nasdaq stock exchange in 2021 . Only time will tell how this situation plays out and what implications it may have for other crypto companies attempting to gain regulatory clarity in the US market going forward .
Overall , it appears that Ethereum has seen more significant outflows than Bitcoin following these lawsuits but overall , these movements are not drastic compared to previous episodes or average daily outflows . It remains to be seen if any further changes occur as more information comes to light about these cases but so far , the impact does not appear too severe .