Digital Assets: Bitcoin Down After The CFTC’s Legal Salvo Against Binance
Any regulatory action against Binance could rub off badly on the crypto industry.
On Monday, cryptocurrencies fell after the Commodity Futures and Trading Commission (CFTC) sued Binance, the world’s largest crypto exchange, for allegedly violating trading rules. Bitcoin’s price slid over 3% to $27,112.71, while Ether fell 3% to $1,714.68.
The lawsuit, filed in a federal court in Chicago, accuses Binance of violating eight provisions of a commodities trading law that aims to prevent money laundering and terrorism financing. The lawsuit could possibly disrupt the exchange’s operations. (CNBC)
Dessislava Aubert, an analyst at crypto data provider Kaiko, said that the news about the exchange largely drove the down move in Bitcoin and that any regulatory action against the largest crypto exchange would have a massive fallout on the industry.
As a result of the news surrounding Binance, crypto-exposed equities too suffered, with Coinbase (NASDAQ: COIN) and Microstrategy (NASDAQ: MSTR) falling 10%, and miners Marathon Digital (NASDAQ: MARA), Hut 8 (TSE: HUT), and Riot Platforms (NASDAQ: RIOT) losing around 8% each.
The losses came alongside a rise in bond yields, which led to a decline in the tech-heavy Nasdaq Composite of 0.6%.
Related Story: Binance Creates AI-Fueled Frenzy On Bicasso, Its NFT Generator
Image by emrahkarakas from Pixabay
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