How Will the Binance-SEC Lawsuit Impact Bitcoin’s Price? Arthur Hayes Chips In

Please fol­low and like us:
Pin Share

The Unit­ed States Secu­ri­ties and Exchange Com­mis­sion has filed a law­suit against the world’s lead­ing cryp­tocur­ren­cy exchange – Binance.

The move has had an instant impact on the mar­ket, send­ing prices into a freefall, with Bit­coin drop­ping below $26K. Now, Arthur Hayes – the co-founder and for­mer CEO of Bit­MEX – chips in on what might hap­pen to the BTC price next.

The SEC v. Binance

As Cryp­toPota­to report­ed yes­ter­day, the Unit­ed States Secu­ri­ties and Exchange Com­mis­sion filed a law­suit against Binance for vio­lat­ing secu­ri­ties reg­u­la­tions, among oth­er things. The agency alleged that the native token of the exchange, as well as BUSD, are unreg­is­tered securities.

In gen­er­al, the law­suit is mak­ing the claim that Binance and its CEO – Chang­peng Zhao – exer­cised con­trol over the US branch of the firm – Binance US – and the assets on its plat­form, despite the pre­tense of inde­pen­dence from the Amer­i­can entity.

In addi­tion, the Com­mis­sion is accus­ing Binance of secret­ly con­tin­u­ing to ser­vice US clients at the inter­na­tion­al exchange – some­thing that the US Com­modi­ties and Futures Trad­ing Com­mis­sion also alleged in March.

The SEC also claims that an enti­ty con­trolled by Chang­peng Zhao engaged in trad­ing at Binance US with the inten­tion of inflat­ing the val­u­a­tion of cer­tain assets on the plat­form and inflat­ing the trad­ing volume.

All in all, the move caused over $300 mil­lion worth of liq­ui­dat­ed posi­tions across the deriv­a­tives mar­kets, send­ing BTC below $26K and BNB to a 3‑month low.

Source: Trad­ingView

What of the Bitcoin Price?

One ques­tion that’s loom­ing at the back of everyone’s head right now is – what will hap­pen to the Bit­coin price? While the answer to that is clear­ly spec­u­la­tion, one strong opin­ion comes from the for­mer CEO of Bit­MEX – Arthur Hayes.

Hayes believes that what’s going on is FUD. He also said that by the end of this sum­mer, the mar­ket will move past that. He’s opti­mistic that there will be a large amount of mon­ey print­ing, which will ulti­mate­ly push prices up.

The mar­ket is down on some binance FUD. But regard­less of the cat­a­lyst, risk mrk­ts r on edge cause of the TGA refill. By end of sum­mer, the mrkt will move past that and onto the lg amt of mon­ey print­ing hum­ming along in the back­ground. I have a few shit­coins to buy in the meantime.

Mean­while, Binance also released a pub­lic state­ment on the mat­ter, accus­ing the SEC of not pri­or­i­tiz­ing their investors but instead attempt­ing to obtain juris­dic­tion­al ground.

The com­pa­ny also reas­sured that all user assets on Binance and the Binance affil­i­ate plat­forms are safe.

SPECIAL OFFER (Spon­sored)

Binance Free $100 (Exclu­sive): Use this link to reg­is­ter and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Spe­cial Offer: Use this link to reg­is­ter & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.

Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published.