Coinbase Shares Fall 9.1% Following SEC Lawsuit Against Binance

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On June 5, the trading of Coinbase stocks ended with a 9.1% decline. This was the market’s response to an SEC lawsuit filed against Binance and its CEO Changpeng Zhao.

Currently, the fall in capitalization is greater than 13.5%. The US regulator had accused Binance of releasing their crypto assets (BNB and BUSD), Simple Earn products, BNB Vault, and staking services, and omitting to register their Binance.com platform as an exchange, broker-dealer or clearing agency.

Furthermore, a CFTC lawsuit was made against Binance and Zhao, accusing them of trading derivatives without proper registration in March 2023.

In the same month, Coinbase had also caught the attention of the SEC and was given a notice for investigation regarding their listing process of Coinbase Prime, Coinbase Wallet and Coinbase Earn staking service.

Analyst Mark Palmer stated that the lawsuit against Binance could possibly be a sign of the SEC taking further legal action against Coinbase, which could result in the risk of 37% of the platform’s revenue.