The U.S. arm of the world’s largest cryptocurrency exchange, Binance.US, has announced it will transition into an all-crypto exchange as of June 13, as a result of mounting pressures from the U.S. Securities and Exchange Commission (SEC), which recently launched significant enforcement action against the company.

In the wake of the SEC’s legal action against Nasdaq-listed cryptocurrency exchange Coinbase, credit ratings agency Moody’s has shifted its rating of the major cryptocurrency exchange from "stable" to "negative". The downgrade stems from uncertainties concerning how the SEC's charges might affect Coinbase's “business model and cash flows.”

SEC Chair Gary Gensler has defended the agency’s recent actions against top cryptocurrency exchanges, Coinbase and Binance, during a speech at the Piper Sandler Global Exchange & FinTech Conference, where he dismissed the crypto sector’s “lack of fair notice” claims.

Top stories in the Crypto Roundup today:

• Binance.US to Transition into All-Crypto Exchange
• Moody’s Downgrades Coinbase’s Outlook to Negative After SEC Lawsuit
• SEC Chair Gary Gensler Dismisses Crypto Sector’s “Lack of Fair Notice” Claims
• Centralized Crypto Exchange Volumes Plunge to Four-Year Low

Binance.US to Transition into All-Crypto Exchange

The U.S. arm of the world’s largest cryptocurrency exchange, Binance.US, has announced it will transition into an all-crypto exchange as of June 13, as a result of mounting pressures from the U.S. Securities and Exchange Commission (SEC), which recently launched significant enforcement action against the company.

The exchange has announced that while the transition is in progress, cryptocurrency-related operations including trading, staking, deposits and withdrawals will continue unabated. Binance.US plans to suspend USD deposits from June 9, to remove USD-based trading pairs shortly thereafter.

Binance.US included in its statement:

“While we remain open to a productive compromise that enables a thriving digital asset marketplace in America, Binance.US will continue to vigorously defend ourselves, our customers and the industry against the meritless attacks of the SEC.”

The SEC sued Binance earlier this week, and on Tuesday filed a temporary restraining order to freeze some assets tied to Binance.US. The regulator has also accused Binance of moving $12 billion to firms controlled by Binance’s founder Changpeng Zhao, a claim that Binance and Zhao deny.

Moody’s Downgrades Coinbase’s Outlook to Negative After SEC Lawsuit

In the wake of the SEC’s legal action against Nasdaq-listed cryptocurrency exchange Coinbase, credit ratings agency Moody’s has shifted its rating of the major cryptocurrency exchange from "stable" to "negative". The downgrade stems from uncertainties concerning how the SEC's charges might affect Coinbase's “business model and cash flows.”

Despite the downgrade, Moody’s pointed out that Coinbase maintains a robust liquidity position, favourably highlighting the company's $5 billion in cash and equivalents compared to $3.4 billion in long-term debt.

Moody's expects Coinbase to persist with its proven "focus on expense management," which has effectively buffered against past declines in transaction revenue.

Notably, financial services firm Berenberg Capital also reassessed its perspective on Coinbase, retaining its "hold" rating but reducing its price target for Coinbase shares from $55 to $39. Berenberg's research analyst Mark Palmer suggested this adjustment mirrors an expectation of prolonged and potentially heightened weakness in Coinbase's Q2 trading volumes because of the SEC charges.

SEC Chair Gary Gensler Dismisses Crypto Sector’s “Lack of Fair Notice” Claims

SEC Chair Gary Gensler has defended the agency’s recent actions against top cryptocurrency exchanges, Coinbase and Binance, during a speech at the Piper Sandler Global Exchange & FinTech Conference, where he dismissed the crypto sector’s “lack of fair notice” claims.

Gensler argued that having additional utility doesn't exempt a cryptoasset from being defined as an investment contract, and refuted the notion that the crypto industry wasn't given sufficient warning about potentially illegal activities, suggesting these claims might be strategic business decisions to risk enforcement action. He said:

“When crypto asset market participants go on Twitter or TV and say they lacked ‘fair notice’ that their conduct could be illegal, don’t believe it … They may have made a calculated economic decision to take the risk of enforcement as the cost of doing business.“

Gensler maintained that traditional finance rules apply equally to the crypto industry and dismissed the notion that crypto platforms can't register with the SEC, insisting that compliance requires effort and a willingness to adjust practices to adhere to securities laws.

Centralized Crypto Exchange Volumes Plunge to Four-Year Low

As regulatory scrutiny intensifies in the United States, centralized cryptocurrency exchanges experienced their lowest trading volumes since 2019 in May.

CData shows that the total trading volume, including both spot and derivatives trading, on centralized exchanges dropped by 15.7%, amounting to $2.41 trillion.

Find out more via CCData’s latest Exchange Review report, which captures the key developments within the cryptocurrency exchange market.

Proof of Talk 2023: 2 days to restore trust in Web3 and design the future of the industry

X Ventures, a German impact investment fund, will host the Proof of Talk conference on June 14th and 15th in Paris. This conference, taking place at a critical juncture for the Web3 ecosystem, aims to define a pathway for its trustworthy and innovative evolution by convening industry leaders, founders, investors, and regulators.

Partner at X Ventures, Zohair Dehnadi, views the event as an opportunity for meaningful dialogue and learning. The goal is to craft an industry paper that sets guidelines for Web3's future.

The summit will feature more than 85 speakers, predominantly senior executives, investors, and founders. Notable speakers include representatives from The Sandbox, Softbank Vision Fund, NEAR Foundation, Ledger, KuCoin, Aave, World Economic Forum, Coinhouse Group, Binance, Animoca Brands, Tron, and Algorand Foundation.

Government officials from Germany, the UK, France, and experts from globally recognized institutions like the World Economic Forum, OECD, and the European Commission will also attend.

The first day of the program will focus on drawing lessons from the past around the theme "Bringing Trust back into Web3”. This includes discussions surrounding; Is trust in code enough? What is the role of VCs? What did we learn from decentralization? How can traditional regulations adapt to decentralized finance? Is MiCA the best use case? Will mass adoption kill the innovative spirit of Web3? Where does AIfit in?

The second day shifts its focus towards the future by bringing together the most promising and pre-selected Web3 startups, as well as renowned investors such as Softbank, The Spartan Group, Fabric Ventures, Shima Capital, and Animoca Brands, to foster creativity and provide founders and investors with opportunities for collaboration and networking.

Tickets are now on sale in limited quantities: www.proofoftalk.io
For more information:
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