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- 1 After the FTX collapse, it was the first time that crypto market capitalization fell more than 4%.
- 2 Major crypto tokens and coins slipped below quarterly low, with Bitcoin trading under $26K.
- 3 Solana, Dogecoin, and dozens of other cryptocurrencies declined over 5-15% intraday.
Cryptocurrency Market valuation fell more than 5% in the last 24 hours, and some of the leading coins and tokens fell more than 15% after the SEC sued a major crypto exchange. Bitcoin price fell below $26K. A decline of 3.58% is seen after it started trading above $26K in 2023.
Top losers of the global crypto market are Sandbox Token which fell over 15%, followed by Pepe at 14.64%; Dogecoin at 7.12%; Solana at 6.47%; XRP at 4.08%; Axie Infinity at 9.49%; DASH, 6.47%; NEAR, 8.44%; and Sandbox, 15.03%.
The downfall in the market is because of tighter regulation by the United States Securities and Exchange Commission. A day earlier, the SEC announced it was prepared to sue one of the crypto exchanges.
At press time, the cryptocurrency market was valued at 1.09 Trillion, and Bitcoin was trading at $25,727.39 with a 24-hours trading volume of $20 Billion. It is important to note that sellers are more active compared to buyers.
Ethereum descended by more than 2.50% following the regulatory action. The overall trading volume of the market slipped by a few percent.
It is not the first time the SEC is going after exchanges for selling unregistered securities. A few months back, the regulators moved against Coinbase. Earlier, the financial watchdog sued Ripple alleging that it sold XRP as unregistered security.
Why the SEC and the CFTC Fight for Control Over Crypto?
Ripple has been battling the SEC for over two years now, but a final decision from the court is awaited. Dozens of exchanges have paused operations in the United States and are exploring other regions including France, Singapore, UAE, and Hong Kong among others.
Representatives introduced a draft bill for the digital asset structure market . Patrick McHenry, R-N.C., and Glenn Thompson, R-Pa. On June 2, Friday, provided a more precise delineation of authority between two U.S. government agencies. As CNBC has reported, the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) will get clarification related to crypto issues.
Different regulators have different opinions, some call crypto securities, and some call it commodities. It still needs to be determined whether crypto is a Security or commodity.
Dan Berkovitz, former general counsel at the Securities and Exchange Commission, while speaking on Laura Shin’s Unchained podcast on May 23, highlighted that Ethereum could come under the legal jurisdiction of both regulatory agencies.
The CFTC continues to claim that Ether and other cryptocurrencies are commodities. Any asset being called a security and commodity can confuse people, but Berkovitz believes that an asset could be called a security and a commodity if the legal definition overlaps.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
