Coinbase Shares Drop 10% Following SEC’s Suit
Coinbase (COIN) shares fell 10.3% on Monday after the Securities and Exchange Commission (SEC) announced that it was suing Binance for breaching federal securities legislation.
“Coinbase shares are down sharply as it appears that US regulation will classify many cryptocurrencies as securities,” said Edward Moya, senior market analyst at international exchange Oanda. “Coinbase wants regulatory clarity, and it appears that the SEC will cripple large portions of the cryptoverse.”
Coinbase stock dropped more than 5% immediately after the filing was made public, and it has since continued to plummet. Meanwhile, the value of bitcoin (BTC) has dropped by more than 5% to below $26,000. Shares of MicroStrategy (MSTR), which has a large amount of bitcoin on its bank sheet, slumped about 9%, as did shares of other bitcoin mining companies. Riot Blockchain (RIOT), Marathon Digital (MARA), and Bitfarms (BITF) all lost more than 9%.
The SEC is accusing Binance of providing unregistered securities and staking services to the general public, among other things, as US lawmakers step up enforcement against cryptocurrency companies.
(With inputs from Shikha Singh)
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