This week is of course largely dominated by the attack by the US Securities and Exchange Commission (SEC) on Binance and Coinbase, but various crypto projects also suffered. The United States financial regulator has labeled BNB, Cardano, Solana and Polygon, among others, as securities for US law.
What does that mean?
We speak of an effect for US law if a financial instrument carries with it a certain profit expectation, which is the result of the issuing entity. For example, a share of a company.
As a company or entity, you may not just put securities on the market. The SEC believes that this has happened in the case of BNB, Cardano, Solana and Polygon.
This may just mean that these tokens will no longer be available at the exchanges. If the SEC is right in its judgment, exchange platforms will need special licenses to be able to list these tokens.
For example, many projects may run into problems as a result and have to surrender a large part of their share price. That’s exactly what we saw happening at BNB, Cardano, Solana and Polygon this week.
Subtle drops
It should come as no surprise that Binance’s BNB took a beating as a result of the SEC’s lawsuit against the exchange platform. BNB fell by 4.16 percent in the past 24 hours and for the past week it is even a drop of 18.42 percent.
Cardano fared even less, dropping 13.96 percent in the past 24 hours and a whopping 26.66 percent in the last seven days. For Solana it is about 8 and 15 percent and for Polygon about 13 and 24 percent.
However, the lawsuit against Ripple has shown that it can take a long time before there is an actual verdict from the judge. Although it is also quite possible that judges will take over the verdict of the case between Ripple and the SEC in the future.
In that regard, the outcome of the case between Ripple and the SEC is hugely important for many projects within the industry.