SEC sued Bitcoin, which fell below $26000 in cryptocurrency stocks, causing a sharp decline across the board

On Monday local time, after the Securities and Exchange Commission (SEC) sued Binance and its CEO Zhao Changpeng, the stock prices of cryptocurrency and crypto and blockchain related companies plummeted, another blow to the industry.

The SEC sued Coin An and its CEO Zhao Changpeng for secretly controlling Coin An. As part of the "fraudulent network" to evade US law, it includes illegal activities such as operating unregistered exchanges, selling unregistered securities, and abusing customer funds. SEC Chairman Gary Jansler stated in a statement that through 13 charges, they accused Zhao Changpeng and the Coin Security entity of involvement in a wide range of fraudulent transactions, conflicts of interest, lack of disclosure, and deliberate evasion of the law.

After the news spread, the price of Bitcoin, the world's largest cryptocurrency, fell by 5.45%, below the $26000 mark, reaching its lowest level since mid March. Coin An's own cryptocurrency fell by 9.72%.

John ReedStark, former director of the SEC's Internet Enforcement Office, said, "This is another targeted attack that has had a devastating impact on the encrypted ecosystem. Soon, no one at the SEC can sue

Coin An stated in a statement that it has been cooperating with the SEC's investigation and "working to answer their questions and address their concerns," including attempting to reach a settlement through negotiations. The company stated, "In today's complaint, the SEC abandoned this procedure and chose to take unilateral action and file a lawsuit. We are disappointed with this choice

The SEC's move to abandon the settlement and file a lawsuit highlights its radical stance on the cryptocurrency industry, which the agency stated violated its trading and securities issuance rules.

After the news of the SEC suing Coinbase, the stock price of Coinbase, the largest listed cryptocurrency exchange in the United States, fell by 9.1%. Crypto miner RiotPlatforms fell 8.8%, MarathonDigital fell 8.4%, and Hut8Mining fell 4.6%.

After the US SEC took a series of actions against encryption companies this year, several companies have invested in expanding their operations outside the United States. Coinbase and Gemini, both cryptocurrency exchanges, launched international exchanges for cryptocurrency derivatives in May.

Rajeev Bamra, Senior Vice President and Director of Decentralized Finance and Digital Asset Strategy at Moody's Investor Services, stated that despite this, the regulatory actions in the United States "emphasize the necessity of establishing safeguards in these markets to meet the expectations of investors and customers.

Therefore, these accusations may reshape the regulatory landscape of digital assets, "he said.

Works sourced from the financial sector's US stock channel are all copyrighted works and are prohibited from being reprinted by any media without written authorization. Otherwise, they will be considered infringing!