Effect Of The SEC's Lawsuit On Cryptocurrency Prices

On June 5, the Securities Exchange Commission (SEC) announced that it had filed a lawsuit against Binance, alleging that the exchange violated securities laws. The SEC filed a similar lawsuit against Coinbase on June 7. In the charges, a number of cryptocurrencies were named as securities, which were available for trading on Binance and Coinbase. 

What Was The Effect Of The SEC’s Lawsuit On Cryptocurrency Prices?

The announcement of the lawsuit saw the listed cryptocurrencies fall by varying degrees. The Sandbox (SAND) fell the most, dropping -11.4% on June 6, before falling -35.0% by June 12, from $0.59 to $0.39. SAND was named in both lawsuits, as it is available for trading on both platforms. 

Cryptocurrencies in the top 10 by market capitalization also saw significant drops. Binance Coin (BNB), the fourth largest cryptocurrency, fell -9.4% in the direct aftermath of the lawsuit before dropping -23.0% by June 12. The price of BNB dropped from $305.57 to $235.20 during that period. 

Meanwhile, Cardano (ADA), which is the eighth-largest token by market capitalization, dropped -7.0% on June 6, and ended June 12 with a -27.9% drop. The price of ADA went from $0.38 to $0.27 in that same period. 

What Cryptocurrencies On Binance Are Alleged Securities?

The cryptocurrencies listed in the lawsuit against Binance by the SEC were Binance Coin (BNB), Binance USD (BUSD), Solana (SOL), Cardano (ADA), Polygon (MATIC), Filecoin (FIL), Cosmos (ATOM), The Sandbox (SAND), Decentraland (MANA), Algorand (ALGO), Axie Infinity (AXS), and Coti (COTI). 

The cryptocurrencies on Binance, which were named in the lawsuit, experienced losses of more than -20% during the period of June 5 and 12. Just behind SAND (-35.0%), was COTI, which fell -33.8% from $0.07 to $0.04 during the same period.

Meanwhile, ATOM dropped -21.6% between June 5 and 12, the least among the tokens declared as securities by the SEC in its lawsuit against Binance. The price of ATOM went from $10.77 to $8.43 during that time. 

What Cryptocurrencies On Coinbase Are Alleged Securities?

The cryptocurrencies listed in the lawsuit against Coinbase by the SEC were Solana (SOL), Cardano (ADA), Polygon (MATIC), Filecoin (FIL), The Sandbox (SAND), Axie Infinity (AXS), Chiliz (CHZ), Flow (FLOW), Internet Computer (ICP), Near Protocol (NEAR), Voyager (VGX), Dash (DASH), and Nexo (NEXO). 

Amongst the cryptocurrencies traded on Coinbase, CHZ dropped the most. The sports-centric fell -14.5% by June 8, the day after the lawsuit was announced. By the end of June 12, CHZ had fallen -32.8%. Meanwhile, its price went from $0.10 to $0.07 between June 5 and June 12.

NEXO fell -5.8% between 5 and 12 June, the least among the cryptocurrencies listed as securities on Coinbase, and the other 17 cryptocurrencies. The lending platform’s token price dropped from $0.66 to $0.62 within that period. 

Which cryptocurrencies are Securities Declared by the SEC?

19 cryptocurrencies were deemed securities by the SEC on June 5, 2023, with respective price changes between June 5 and 12:

Methodology

The study examined the prices of nineteen tokens named in the SEC lawsuits against Binance and Coinbase, between June 5 and June 12, using data from CoinGecko. The tokens selected were Binance Coin, Cardano, Solana, Polygon, Cosmos, Filecoin, The Sandbox, Decentraland, Algorand, Axie Infinity, Chiliz, Flow, Internet Computer, Near Protocol, Voyager, Dash, Nexo, and Coti. 

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