SEC sues Binance and CZ.

In the latest episode of “The Market Report,” analyst and writer Marcel Pechman discusses the impact of the United States Securities and Exchange Commission lawsuit against the Binance exchange.

It is likely that the U.S. population will be prohibited from using the international version of Binance, and those who opt for VPN services will be at risk of being prosecuted. Pechman believes that Changpeng “CZ” Zhao and Binance will either lose or strike a deal pleading guilty, pay a fine, and be forced to halt services for North American entities — including Paxos and the Binance USD (BUSD) stablecoin.

Considering that Binance is the absolute leader in spot and derivatives trading, one might call the 5% price correction on April 5 a “vote of confidence,” meaning traders believe Binance international will remain fully operational. Worst-case scenario? A hefty fine, but operations will not be impacted, and every client will be made whole, similar to the BitMEX outcome.

As for the 10 tokens that the SEC claims to be securities, North Americans will not be blocked from buying or holding those altcoins, but it adds an extra step if they’re willing to trade them — for example, using a decentralized exchange.

Pechman believes that the blockchain lawsuit differs from Binance’s, as the U.S.-listed company has a huge base of North American clients and cannot move its operations abroad without a significant reduction in its user base and volumes. Moreover, Binance has other issues involved, such as the money transfers between related entities and the potential illicit use of client funds.

So, the first read for blockchain shows a much lighter case, very unlikely to become something more eventful, while Binance and CZ’s odds of facing the Department of Justice and criminal charges are way higher.

Pechman highlights that if the U.S. Federal Reserve continues printing trillions of dollars to sustain the economy, investors will scramble to find scarce assets, so a crypto bull run will happen whether or not blockchain and Binance are taking part in the process.

Lastly, the show discusses whether the Bitcoin price will retest the $24,000 level, considering the long/short ratio hit levels unseen in over 12 months. The show airs every Tuesday on the Cointelegraph Markets & Research YouTube channel.

We will continue to update Phone&Auto; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Market

💡 Unlocking the Secrets of MicroStrategy’s Bitcoin-Based Business Model 💰🔍

According to the report, a price target of $990 is expected to be achieved as bitcoin is projected to reach a value o...

Policy

Crypto Enthusiasts in China Embrace Crypto Investments: A Closer Look

A new report from Kyros Ventures reveals that Chinese investors have a strong interest in cryptocurrency, ranking sec...

Market

Jane Street and Other Trading Giants May Join Blackrock's BTC ETF Stay Tuned for First Mover Americas!

Fashionista, stay up-to-date on the latest price trends in crypto markets as of Nov. 1, 2023!

Bitcoin

Madeira Sets Sail to Become Bitcoin Business Hub Innovation Ignites on the Island!

Get ready for a new Bitcoin business hub! President Miguel Albuquerque of Madeira revealed plans at Bitcoin Amsterdam...

Bitcoin

What's Behind Bitcoin's Price Surge Above $42,000

Bitcoin has made an impressive rise above $42,000, defying the expectations of many after being stagnant below $40,00...

News

Meta AI Boss LeCun’s Hilarious Take on Artificial Intelligence and Quantum Computing

Fashionista readers, according to Meta AI leader Yann LeCun, there is an ongoing AI battle and the weapon of choice f...