Bitcoin rallied past the $27k level on Tuesday following reports that the SEC filed a lawsuit against Coinbase.
The SEC filed lawsuits against Binance and Coinbase within the space of 24 hours.
Bitcoin Bounces Back Above $27k
Bitcoin, the world’s leading cryptocurrency by market cap, rose by more than 5% on Tuesday to reach the $27,259 level.
This latest development comes despite the SEC filing a lawsuit against Coinbase, one of the leading crypto exchanges in the world.
The United States States Securities and Exchange Commission (SEC) filed a lawsuit against Coinbase, alleging that it has been operating as an unregistered broker. According to the SEC, Coinbase has never registered as a broker, national securities exchange or clearing agency.
Furthermore, the regulatory agency stated that Coinbase listed some tokens that are securities on its platform.
The lawsuit comes barely 24 hours after the SEC filed a lawsuit against Binance and its CEO, Changpeng Zhao.
Despite the lawsuits against the two biggest cryptocurrency exchanges, the crypto market went on a rally.
Bitcoin rose from below $25,400 to reach a high of $27,259 on Tuesday. The market has since cooled down, and Bitcoin is now trading at $26,852 per coin.
Investors might have shrugged off the SEC’s lawsuits as the regulatory agency seems to be making the US market toxic for cryptocurrency companies to operate. Some experts believe that the SEC’s Gary Gensler is dedicated to bringing down the cryptocurrency market. However, investors have been resilient and continue to push funds into the market.
The total cryptocurrency market cap now stands at $1.12 trillion, up by nearly 3% in the last 24 hours.