Cryptos stabilize after slumping on SEC crackdown jitters

Cardano’s ADA coin was flat on Monday after briefly dropping nearly 17 per cent over the weekend, while, Solana’s SOL is still 6 per cent lower and Polygon’s MATIC is over 2 per cent lower

The prices of cryptocurrencies showed indications of stabilizing on Monday following a steep market sell-off last week triggered by lawsuits the U.S. Securities and Exchange Commission brought against Coinbase and Binance for securities breaches.

Cardano’s ADA coin was flat on Monday, according to Coin Metrics, after briefly dropping nearly 17 per cent over the weekend. In the meantime, Solana’s SOL is still 6 per cent lower and Polygon’s MATIC is over 2 per cent lower. At one time over the weekend they dropped nearly 17 per cent and 20 per cent, respectively. Binance’s BNB token was comparatively steady over the weekend but shed over 3 per cent Monday.

During the last week, a number of altcoins slumped by at least 15 per cent. In the seven days ending June 9, Cardano’s coin lost 27 per cent, Solana’s stumbled 23 per cent and Polygon’s shed 24 per cent. The BNB token lost over 18 per cent.

The Securities and Exchange Commission sued Coinbase and Binance last week, alleging both failed to register as an exchange, broker-dealer, or clearing agency and of selling unregistered securities. The regulator named various coins it said could be considered securities, including the Solana, Cardano and Polygon coins. On Friday, stock and crypto trading app Robinhood delisted the three.

In the case against Binance, it also accused the exchange and its CEO Changpeng Zhao of blowing up trading volumes, redirecting customer funds and misleading customers about its controls.

In the meantime, bitcoin and ether stayed below the flat line on Monday.

(Bitcoin’s) drop was limited compared to others and the price has been supported by its February high, said Yuya Hasegawa, crypto market analyst at Japanese bitcoin exchange Bitbank.

Hasegawa further said that Bitcoin has been holding it together comparatively well, but it is in for a potentially somewhat risky week as more bad news could come up anytime with regard to Securities and Exchange Commission’s legal action, and the broader financial markets prepare for U.S. Consumer Price Index and the Federal Open Market Committee meeting.