Coinbase Shares Drop 10% Following SEC’s Suit Against Binance

Coinbase Shares Drop 10% Following SEC’s Suit Against Binance

Shares of Coinbase (COIN) were down 10.3% after news broke that the Securities and Exchange Commission (SEC) was suing Binance on allegations of violating federal securities law on Monday.
“Coinbase shares are down sharply as it looks like U.S. regulation will deem many cryptos as securities,” said Edward Moya, senior market analyst at foreign exchange Oanda. “Coinbase wants regulatory clarity and it seems the SEC is going to cripple large parts of the cryptoverse.”
Coinbase stock fell more than 5% right after the filing was released and then continued to fall. Meanwhile, the price of bitcoin (BTC) fell more than 5% to below $26,000. Shares of MicroStrategy (MSTR), which holds a vast amount of bitcoin on its balance sheet, fell almost 9%, while the shares of several bitcoin mining stocks dropped as well. Riot Blockchain (RIOT) and Marathon Digital (MARA) both fell more than 9%, while Bitfarms (BITF) dropped more than 6%.