Ethereum Layer 2 tokens rally as mainstream cryptocurrencies crumble under SEC’s regulatory crackdown
Ethereum struggled to erase losses from the SEC’s enforcement action on two of the largest crypto exchanges in the ecosystem, Binance and Coinbase. The altcoin’s price climbed back above the key $1,800 level; ETH is trading at $1,877 at the time of writing.
While mainstream cryptocurrencies took a hit after the US financial regulator’s actions, Layer 2 tokens, Optimism (OP), Arbitrum (ARB) and Immutable X (IMX) yielded gains for holders. The price rallies in Layer 2 tokens are likely a spillover effect of decentralized exchanges’ popularity after the legal woes faced by Binance and Coinbase.
MATIC price struggles to recover after $95 million transfer from whale to Binance
Ethereum network’s largest scaling solution, MATIC, wiped out its gains from the past week in response to the US Securities & Exchange Commission’s (SEC) crackdown on the token. The SEC deemed MATIC a security in its lawsuit against both crypto exchanges Binance and Coinbase.
MATIC whales are shedding their holdings of the Layer 2 tokens and the selling pressure on Polygon’s native crypto is climbing across crypto exchange platforms. This could result in further losses for MATIC holders in the short term.
Coinbase finds support from Third Circuit court against SEC as its stock COIN falls by 18%
Coinbase is still reeling from the bearishness of the last two days as its stock attempts to recover. But as the world’s second-biggest cryptocurrency exchange bounces back, it seems to have found a way to bring the Securities and Exchange Commission (SEC) to answer some crucial questions it has been avoiding for a year now.
The Chief Executive Officer (CEO) of Coinbase, Paul Grewal, tweeted on June 6 that the Third Circuit issued a short order in Coinbase’s mandamus action today. The court brought the order forward following the SEC’s announcement of filing a lawsuit against Coinbase for violating Securities laws.
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