Regulatory Turmoil Sends Binance.US Plummeting, Coinbase Takes the Lead

Published by

Qadir AK

July 6, 2023

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.

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.

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.

Qadir AK

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.