- US regulators target thriving crypto exchanges, says Kaiko analysis.
- SEC charges Bittrex and Coinbase for regulatory issues.
- Regulatory pressures impact Binance.US with decreased market depth.
Kaiko, a data analysis platform, has identified a discernible trend in the regulatory crackdown on US-based cryptocurrency exchanges. The findings indicate that US regulators target thriving crypto exchanges.
Kaiko recently tweeted that Bittrex Exchange was the first to be charged by the Securities and Exchange Commission (SEC) for regulatory issues. Interestingly, Bittrex had the largest number of instruments listed on its exchange at the time of the charge.
Kaiko, a leading market data provider, has reported that the SEC charged Coinbase, the second-largest cryptocurrency exchange in terms of listed instruments. This comes after Bittrex was also noted for similar charges. Additionally, Binance, which ranks closely with Kraken in the third and fourth positions for listed instruments, has recently been sued by the SEC for allegedly violating regulatory protocols. These developments highlight the increasing scrutiny and regulation of the cryptocurrency industry by regulatory bodies.
According to Kaiko’s analysis, the SEC may target Gemini as the next crypto exchange to face sanctions. However, it is important to note that Kaiko’s formula is flexible, and there is no certainty that this pattern will persist. As such, all crypto exchanges must remain vigilant and compliant with regulatory requirements.
In the not-too-distant past, the crypto industry was no stranger to regulatory clampdowns. However, as more and more jurisdictions have established clear regulatory frameworks, such clampdowns have become less frequent. This newfound stability has helped foster greater acceptance of crypto within various mainstream industries.
The recent legal actions taken by the SEC against two prominent cryptocurrency exchanges have raised concerns about the potential setback of crypto development in the United States. Despite initial user criticism, the crypto market has remained resilient despite fear, uncertainty, and doubt. While Bitcoin experienced a brief dip of nearly 7%, it quickly rebounded and maintained its bullish momentum. It remains to be seen how these legal proceedings will impact the future of cryptocurrency in the US, but it is clear that the industry is not easily deterred.
Despite the market’s resilience against fear, uncertainty, and doubt (FUD), Binance still grapples with regulatory challenges. Over the past 72 hours, the Bitcoin market depth on Binance.US has significantly decreased, with bid and ask depths plummeting by over 70% since June 6, as reported by Kaiko. While users have avoided the jurisdiction, they have not shied away from the market. However, due to reports of potential USD withdrawal halts, Bitcoin trades at a slight discount on Binance.US. These developments highlight the ongoing impact of regulatory pressures on the cryptocurrency industry.
