Although cryptocurrency companies have problems, the Bitcoin protocol is not affected.
The evolution of the SEC lawsuits could influence the price of BTC in the coming days or months.
Adverse news hit the cryptocurrency industry since yesterday, June 5. As a consequence, the bitcoin (BTC) price is being affected with high volatility.
First, the Binance exchange received a lawsuit from the United States Securities and Exchange Commission (SEC) for alleged violations of regulations in that country. Now, a day later, it’s Coinbase’s turn. The SEC sued him for the same reason..
As reported by CriptoNoticias, the BTC price had a considerable drop after the lawsuit against Binance was known. But today, hours after the lawsuit against Coinbase, the price reacts upward. As can be seen in the following price chart, the digital currency has already recovered the price it had at the time the news of the lawsuit against Binance was released.
The fact shows the strength of the bitcoin market. Despite what some might consider a regulatory “hit” against two companies, the digital currency created by Satoshi Nakamoto is not affected. Even if either of these two companies were to go out of business (which, at least so far, hasn’t), the Bitcoin protocol and its BTC currency would still be available to anyone who wanted to use it.
Some analysts, such as the social media influencer known as CryptoTea, suggesteven that SEC lawsuits could be bullish for bitcoin. This is because the accusations are based on the fact that, presumably, other cryptocurrencies (altcoins) would be unregistered securities. Neither bitcoin nor ether (Ethereum cryptocurrency) would enter this category. Says CryptoTea:
The SEC confirmed that Solana, Cardano, and 99% of other cryptocurrencies are securities. Which means that when exchanges like Coinbase are forced to delist them, most Americans will have no choice but to trade their altcoins for bitcoin.
CryptoTea, social media influencer
In any case, such a thing cannot yet be asserted with certainty, definitively. Those responsible for the development of these altcoins (or even the exchanges that trade them) could appeal this decision of the SEC and take the case to higher instances. Something similar is what has been happening since 2020 with the digital currency XRP and, so far, no definitive decision has been made on whether or not it is an unregistered security.
We will have to wait for the next hours and days to see how the bitcoin price movement develops and if it manages to stay at these levels, or if it falls back to lower prices.