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Qadir AK
Qadir AK
Author
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Jul 06, 2023 07:19 UTC
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Regulatory Turmoil Sends Binance.US Plummeting, Coinbase Takes the Lead
Binance.US market share declines amid regulatory lawsuit, while Coinbase gains ground.
SEC alleges Binance.US operated as unregistered securities exchange.
Coinbase's market share increases due to surveillance partner role in SEC filings.
The cryptocurrency market has recently been buzzing with news surrounding two prominent players, Binance.US and Coinbase. While Binance.US, a leading cryptocurrency exchange in the United States, has been grappling with a significant decline in market share due to an ongoing regulatory lawsuit, Coinbase, another major exchange, has witnessed a surge in its market share.
Let’s delve deeper into these developments and their implications.
Why Is Binance Struggling?
According to data from Kaiko reported by Reuters, Binance.US, the U.S.-based arm of Binance, has seen its market share plummet from over 22% in April to a mere 0.9% as of June 26. This steep decline can be attributed to the legal action taken by the U.S. Securities and Exchange Commission (SEC) against Binance.US, Binance, and CEO Changpeng “CZ” Zhao.
The SEC alleges that Binance.US has been operating as an unregistered securities exchange. Notably, this lawsuit follows a similar action taken by the Commodity Futures Trading Commission against Binance and CZ earlier this year.
Read More: Binance Faces Setback as German Regulator BaFin Rejects Crypto Custody License Application
Good Days for Coinbase
In contrast to Binance.US, Coinbase has experienced a noteworthy uptick in its market share. Reuters data indicates that Coinbase’s market share in the U.S. increased from around 48% to 55% in June.
This rise can be attributed to Coinbase’s appointment as a surveillance partner in several SEC filings related to the launch of spot Bitcoin exchange-traded funds (ETFs) by asset managers.
Related: Coinbase Users Rally: 2,300 Join as Amici Curiae in Legal Battle with SEC
Current State of Crypto
The overall cryptocurrency market has witnessed a surge in trading volume, surpassing an astounding $2.7 trillion in combined spot and derivatives trading. Part of this surge can be attributed to growing investor sentiment following BlackRock’s recent filing for a spot Bitcoin ETF. However, it’s crucial to note that the SEC has yet to approve any spot cryptocurrency ETFs in the U.S. and has rejected numerous applications from various firms.
Enthusiasts and investors should closely monitor these developments, as they have the potential to significantly impact the cryptocurrency ecosystem. The changing fortunes of Binance.US and Coinbase, alongside regulatory decisions, will shape the direction of the market.
Stay tuned for more updates.
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