Crypto Community Shows Support for Binance Following US SEC Lawsuit
The world’s largest crypto exchange Binance and its founder continue to enjoy widespread support from the crypto industry in the aftermath of another regulatory scrutiny against the company.CEO Changpeng Zhao launched a poll on Twitter titled “Who can protect you more? Binance or the SEC.”
The poll shows unwavering support for the exchange from crypto enthusiasts.
Massive Support For Binance
In a notable move, the Binance boss initiated a poll on Twitter, engaging the cryptocurrency community in a discussion on investor protection. The poll witnessed significant participation, with nearly 200,000 individuals voting in favor of the exchange.
The support for Binance stands impressively at over 85%, underlining the community’s confidence in the platform’s ability to safeguard investors. Conversely, the support rate for the US Securities and Exchange Commission (SEC) is nearly 15%.
Meanwhile, the Twitter poll showcases the sentiments of the crypto community regarding the perceived efficiency of investor protection measures implemented by Binance against the SEC’s regulatory oversight. Furthermore, the crypto community’s massive support indicates their trust in the digital asset trading platform.
In contrast, the SEC has come under intense criticism for its regulatory practices, especially against adopting an enforcement-centric approach. In a recent development, the leading US securities watchdog filed 13 charges against Binance and its CEO in the District of Columbia.
These charges relate to violations of securities laws, signifying the regulatory scrutiny faced by the largest cryptocurrency exchange and its leadership. Aside from Binance, the top regulator is in a long-drawn legal battle with Ripple and Coinbase.
Observers believe the Ripple case will likely be concluded in August this year. In the case of Coinbase, the firm has taken a proactive stance by filing complaints against the SEC, seeking clarity on crypto regulations and guidelines.
This action was prompted by the SEC’s issuance of a wells notice to Coinbase in March, leading to heightened scrutiny and an ongoing dialogue between the leading American crypto exchange and the regulatory agency.
Binance Records $623 Million Outflows In 24 Hours
On-chain data has revealed a significant development on the Binance platform, revealing that it experienced a noteworthy negative netflow of $623 million on June 5th. These massive outflows coincided with the US SEC filing a new lawsuit against Binance.
The lawsuit sparked market reactions and heightened concerns within the crypto community regarding the future course of Binance and its ongoing legal challenges with regulators. As a result, Binance experienced a spike in withdrawal levels similar to the bank crisis period.
Despite this notable increase, it is essential to highlight that historical data shows that the exchange can handle such outflows without any issues. Binance’s negative netflows amounting to as much as $1 billion at the time of writing, have been influenced by various instances of fear, uncertainty, and doubt (FUD) circulating within the market.
Meanwhile, blockchain analysis firm Nansen’s recent findings show a significant shift in netflows toward Binance on the Ethereum network. Early today, the exchange saw a substantial surge by $75 million in positive netflow within just a few hours.
In addition, the sudden influx of funds highlights the increased activity and investor interest in utilizing Binance’s platform for Ethereum-related transactions. Overall, the positive netflow signals a potential boost in trading volume and overall market sentiment surrounding Binance and its offerings on the Ethereum blockchain.
Current data shows that the exchange’s reserve wallets hold $55 billion worth of crypto assets. In addition to the ongoing lawsuit filed by the SEC, the firm is also under investigation by the US Department of Justice (DoJ), the Commodity Futures Trading Commission (CFTC), and the Internal Revenue Service (IRS).
Despite the FUD relating to the allegations and lawsuits against Binance, it is unlikely that the exchange’s operations would be affected as it is not the first time it has been in similar circumstances.
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