Altcoins Dip Following Second SEC Lawsuit Against Crypto Exchange

Tokens listed successful the U.S. Securities and Exchange Commission (SEC) suit against U.S crypto speech Coinbase (COIN) are tanking.

The SEC sued Coinbase connected allegations of violating national securities law, a time aft filling a akin suit against Binance. The exchange’s shares tanked 20% successful pre-market trading.

The tokens listed successful the suit are Solana (SOL), Cardano (ADA), Polygon (MATIC), Filecoin (FIL), Sandbox (SAND), Axie Infinity (AXS), Chiliz (CHZ), Internet Computer (ICP), Voyager Token (VGX), NEAR protocol (NEAR), NEXO, FLOW and DASH.

Of the thirteen listed assets, VGX took the hardest hit, losing 3.25% successful the past hour. Solana’s SOL besides fell astir 2%, and was besides down 9% implicit the past 24-hours. Solana’s SOL was amongst the named tokens successful Binance’s lawsuit connected Monday. The Sandbox’s SAND, listed successful some the Coinbase and Binance lawsuits, has mislaid 16% implicit the past 24 hours.

According to the SEC, Coinbase has operated arsenic an unregistered broker, speech and clearing bureau simultaneously, arguing that it solicited customers, handled orders, allowed for bids and acted arsenic an intermediary each astatine once. The SEC warned Coinbase earlier this twelvemonth that it mightiness writer the exchange, sending a Wells Notice, which Coinbase responded to successful April.

In a remark to CoinDesk, Cardano Foundation CEO Frederik Gregaard said the enactment "disagrees with the caller qualification of ADA arsenic a information nether US law."

"We look guardant to the continued engagement with regulators and policymakers to execute ineligible clarity and certainty connected these matters," helium said. "Meanwhile, we volition support contributing to the vibrant and divers Cardano ecosystem.”

UPDATE (June 6, 2023, 17:39 UTC): Adds Cardano CEO comment.