How will the Binance-SEC lawsuit affect the price of bitcoin? Arthur Hayes Chips Inn

The United States Securities and Exchange Commission has filed a lawsuit against the world’s leading cryptocurrency exchange – Binance.

The move had an immediate effect on the market, sending prices into freefall, with bitcoin falling below $26K. Now, Arthur Hayes – co-founder and former CEO of BitMEX – offers suggestions on what could happen to BTC price going forward.

SEC v. binance

As crypto potato As reported yesterday, the United States Securities and Exchange Commission filed suit against Binance for violating securities regulations, among other things. The agency alleges that the native token of the exchange, as well as BUSD, are unregistered securities.

In general, the lawsuit is claiming that despite pretending to be independent from the US entity, Binance and its CEO – Changpeng Zhao – exercised control over the firm’s US arm – Binance US – and the assets on its platform.

Furthermore, the commission is accusing Binance of continuing to secretly serve US customers on the international exchange – something the US Commodities and Futures Trading Commission also alleged in March.

The SEC also alleges that Binance, an entity controlled by Changpeng Zhao, engaged in trading in the US with the intent to inflate the valuation of certain assets on the platform and inflate trading volume.

In total, the move resulted in over $300 million of liquidated positions in derivatives markets, sending BTC below $26K and BNB to a 3-month low.

What about the price of bitcoin?

One question that’s spinning in the back of everyone’s head right now – what will happen to the price of bitcoin? While the answer is clearly speculation, a strong opinion comes from the former CEO of BitMEX – Arthur Hayes.

Hayes believes that That what is happening is FUD. He also said that the market will surpass it by the end of this summer. He is optimistic that there will be a massive amount of money printing, which will eventually drive up prices.

The market is down on some Binance FUD. But regardless of the catalyst, the risk arises at the edge of the TGA refill. By the end of summer, the market will move beyond that and switch to the LG AMT of money printing humming in the background. I have some shitcoins to buy in the meantime.

Meanwhile, Binance has also released a public statement on the matter, accusing the SEC of not giving priority to its investors, instead trying to gain jurisdiction.

The company also assures that all user assets on Binance and Binance affiliated platforms are safe.