• The SEC sued Binance and Coinbase on Monday and Tuesday, respectively.
• On-chain data shows that Ethereum withdrawals are outpacing Bitcoin withdrawals, with 5% of Coinbase’s ETH withdrawn and 3% of Binance’s reserves withdrawn.
• Bitcoin withdrawals have remained relatively steady, with only negligible amounts being withdrawn from each exchange.
SEC Suing Binance & Coinbase
The SEC has recently stepped up their regulatory clampdown by filing lawsuits against two of the largest exchanges in the world – Binance on Monday and Coinbase on Tuesday.
Looking at the on-chain movements, we can see that there has been no significant outflow of Bitcoin from either exchange so far – 15,000 BTC from Binance and 550 BTC from Coinbase (a negligible 0.1% of total balance). The price of Bitcoin also bounced back after an initial dip following the news.
Ethereum Outflows Increasing
When it comes to Ethereum however, the situation is different – 5% of Coinbase’s ETH was withdrawn on Tuesday while 3% was taken out from Binance’s reserves. This could be related to the news as traders look to move their funds away from these two exchanges due to their uncertain future following the lawsuit.
Coinbase Lawsuit More Intriguing
The lawsuit against Coinbase is more intriguing due to its status as a Nasdaq listed company which had openly strived for clear regulation since 2021 when it went public.
Overall, despite some notable activity in regards to Ethereum withdrawals, it does not seem like there will be any major impacts resulting from these lawsuits yet – but this may change in the near future as further details about them emerge.