What the numbers say: The largest U.S. crypto exchange Coinbase's shares (COIN) increased by more than 50% in value since the U.S. Securities and Exchange Commission (SEC) intensified its crackdown on the crypto industry in early June. COIN's price reached $81.21 on July 10, up from $51.61 on June 6. The figure also represents an over 130% surge for the last six months and a 50% rise YoY. Relevance: The SEC filed a lawsuit against Coinbase on June 6 through a 101-page complaint over alleged U.S. securities law violations. In the complaint, the agency labeled 12 tokens listed on Coinbase as unregistered securities. The regulator also claimed that Coinbase is unlawfully operating as an exchange, a broker-dealer, and a clearinghouse at the same time without registration with the SEC, though it is subject to U.S. securities laws. However, following the lawsuit, some major investors, including Cathie Wood-led investment management firm ARK, continued to buy and hold COIN shares, demonstrating their support for the exchange. Brands that should care: One day before Coinbase, the SEC also filed a lawsuit against rival crypto exchange Binance and its CEO Changpeng Zhao (CZ) over U.S. law violations. However, contrary to Coinbase, Binance felt the impact of the increased crackdown negatively on its native assets. Over the past month, the exchange's native token BNB retreated to as much as the $240 level, down from $305 before the lawsuit. |
