With the SEC’s suit against Binance, a new negative wave in the crypto sector is blowing among the flagship crypto token supporters.
On 5 June 2023, the United States Securities and Exchange Commission (SEC) sued Binance Exchange, Binance’s American independent affiliate BinanceUS, & Binance co-founder & CEO Changpeng Zhao (CZ).
The SEC body prepared a nearly 130-page complaint against the Binance crypto exchange and there they mentioned that Binance officers unregistered crypto assets trading services like Binance coin (BNB coin, and Binance stablecoin (BUSD).
Many Crypto Twitter users noted that the SEC body also dragged Cardano (ADA), Solana (SOL), Polygon (MATIC), Filecoin, Atom coin, SandBox (Sand), Decentraland (Mana), Algorand (ALG), AXS coin, & COTI coin under its suit.
This means, all these mentioned crypto assets are unregistered security crypto tokens under the purview of the SEC body and also in the future trading & business on these coins will be subject to the violation of federal securities laws.
Even crypto staking services for such crypto assets will be subject to the violation of federal services laws.
A crypto Twitter user slammed the SEC chairman Gary Gensler over considering ADA coin as a security token and he also confirmed that the Cardano project or ADA coin is not backed by any entities.
Binance CEO CZ responded to the SEC chairman and suggested Gensler read the comments under his tweet that whether the SEC is protecting the crypto investors or intending to protect them.
Read also: Binance facing criticism over privacy coins delist decision
