BNB falls as SEC sues Binance

The U.S. Securities and Exchange Commission (SEC) announcement of a lawsuit against Binance, the cryptocurrency exchange giant, has caused a decline in the value of Binance Coin (BNB). The SEC has stated in its court filing that it considers BNB to be a security under U.S. law.

At the time of writing, BNB is trading at around $280 against USDT, according to CoinMarketCap data. This marks an 8.3% decrease in the past 24 hours.

Following recent events, Binance CEO Changpeng Zhao released a statement reaffirming the company’s commitment to maintaining stable systems, including both withdrawal and deposit functionalities. 

Zhao also indicated that an official response from Binance would be provided after the complaint had been reviewed. He noted that the media had obtained the information before the exchange had a chance to respond.

https://twitter.com/cz_binance/status/1665742100845961217

The lawsuit against Binance and the SEC’s classification of BNB as a security will have significant implications for the broader cryptocurrency ecosystem. The outcome of this legal action could substantially impact Binance’s operations and the regulatory landscape surrounding cryptocurrencies in the United States.

According to the allegations, the SEC asserts that Binance and its affiliate BAM Trading operated as an unregistered securities exchange, broker-dealer, and clearing agency. Additionally, the SEC claims that Binance sold unregistered securities, including its native tokens BNB and BUSD.

As the lawsuit situation against Binance continues to unfold, crypto enthusiasts and observers are eagerly awaiting updates and developments regarding the SEC’s case.

The leading cryptocurrency Bitcoin has experienced a 5.1% drop, while Ether, the second-largest cryptocurrency, has fallen by roughly 4.4%.