Binance Liquidity Dries Up After SEC Lawsuit
The SEC's shot across crypto's bow is taking its toll
Today, crypto markets are on edge as the world continues to measure the impact of the SEC’s crackdown and the likelihood that Congress comes to the rescue. Liquidity concerns are growing as market makers pull back on Binance’s US platform following the SEC’s lawsuit. On Tuesday, the House plans to pick back up its discussion of a draft bill to give crypto tokens a path to trade as commodities – and escape the jurisdiction of the SEC.
Our take? People continue to overlook that House Republicans have been leading the charge on a complete defense against SEC overreach. The war for crypto’s fate in the US isn’t over. It’s just beginning.
Here’s what’s happening today in crypto, featuring our new Twitter Space on the headlines with Ikigai Asset Management’s Travis Kling. Over the weekend, he caused a stir by sharing DMs he received from Binance CEO CZ after comparing and contrasting the FTX collapse with Binance’s current battle for survival.
In SEC v. Coinbase …
Over the weekend, the Wall Street Journal published its interview with Coinbase CEO Brian Armstrong. In a wide ranging discussion, Armstrong noted his relationship with SEC Chair Gary Gensler has been “quite difficult” and weighed in on what regulatory frameworks might actually be needed in crypto. If there was one awkward bit, it may have been when WSJ asked about any special considerations Coinbase takes into account when selecting which tokens it lists on its exchange (and whether that decision is swayed by what its venture arm might own.)
In Politics…
The back-and-forth of Republicans and Democrats embracing and attacking crypto is not without cost, according to Bitcoin billionaire twins Cameron and Tyler Winklevoss. Over the weekend the twins took to Twitter to note that, “Senator Warren and Gary Gensler’s war on crypto is going to alienate an entire generation of would-be Democrats.”
Our Latest Episode…
In the SEC’s rush to crackdown on crypto, we couldn’t help but notice the growing list of times Chair Gensler contradicted himself.
There was the time the SEC let Coinbase go public, only to turn around and sue the company years later. There was the time Gensler talked up Algorand at MIT as a great technology, and then turned around and labeled its token a security in the Binance lawsuit. And, more recently, Gensler has been on an absolute tirade against how crypto has no use case (all while the Fed prepares to launch its expedited transfer system to try to catch up to the speed of crypto payments.)
Watch our Episode below, or at Coinage.Media.
In Other Headlines…
Sen. Lummis Renews Commitment to US Crypto Regulation: ‘The Fight is Far From Over’
Robinhood saw crypto trading volumes plummet 43% in May
Crypto Global Bid and Ask Metric Plunged 20% Over Weekend, Points to Paper Thin Liquidity
Binance.US Market Depth Declines 76% in June Following SEC Lawsuit
That’s everything we’re taking a look at this week! If you missed us discussing these stories live on Twitter, check out the full recording at Coinage.Media.
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