By Michael Scott
On Thursday, Binance, a crypto exchange company, revealed its intentions to suspend the United States dollar. It also claimed that as early as June 13, its banking partners are getting ready to halt its fiat dollar withdrawal channels. This is happening days after the suing of Binance and Changpeng Zhao, its chief executive officer, by United States regulators.
Binance Shifts to Crypto-only Exchange
According to a tweet posted late at night, the nation’s arm of the globe’s biggest crypto exchange claimed that this intervention is being executed since it is implementing practical strategies in its shift to a crypto-only exchange. Further, the exchange informed its clients about deposits, trading, and staking in crypto being operational.
On Monday, the Securities and Exchange Commission (SEC) sued Binance and Changpeng Zhao, its founder. A day later, the agency filed a lawsuit against Coinbase (COIN O), the biggest United States cryptocurrency platform. These actions indicate a significant crackdown escalation on the crypto industry by the nation’s regulators since FTX’s collapse in 2022.
Avoid Freezing Binance.US Assets
A Thursday filing before the federal court showed that financial regulations in the United States opposed the Binance assets’ freeze. According to Matthew Dibb, the Chief Operation Officer of Stack Funds, a Singapore crypto platform, Binance.US is a significantly smaller business than their global group. Putting a stop to withdrawals will lead to the creation of panic and worry.
Last week, the Securities and Exchange Commission and regulators hit Binance with different issues and comments. Cryptocurrencies prices hardly responded to the news amid Bitcoin’s final margin recording a low of $26495 on Friday. Further, it was likely to encounter a 2 percent loss following a dip of $25250 earlier in the week. All this happened amid a crackdown by SEC. Binance’s BNB token slid to $261.46, representing a 0.46 percent dip.
According to Tony Sycamore, a market analyst at IG Markets, the response remains muted. This may be attributed to two factors, either dismissal by the market or failure to get a handle on it.
SEC Issues Threats and Aggressive Conduct
A Thursday tweet by Binance.US showed that the Securities and Exchange Commission’s cryptocurrency perspective is threatening and aggressive. Additionally, the tweet indicated that Binance U.S would keep striving to defend itself, its clients, and the crypto industry from the agency’s meaningless attacks.
In the recent days after the lawsuit, Gary Gensler, SEC’s chair, has received attacks from the crypto industry. However, he has denied claims that the agency is attacking it.
According to Wayne Huang, XREX Inc’s co-founder and chief executive officer, stablecoin providers, exchanges, and industry players will focus on various roles to ensure the best user experience amid regulatory scrutiny. XREX is a blockchain-enabled organization that operates the XRED USD-crypto exchange.