• Coinbase responds to the SEC’s lawsuit claiming that its digital assets listed on its platform are not investment contracts and therefore not securities.
• Germany’s financial watchdog denies Binance a custody license in an ongoing discussion with regulators.
• The native token of decentralized finance (DeFi) protocol Compound has surged by more than 50% over the past four days, alongside a spike in volume and outflows on Binance.
Coinbase Responds To SEC Lawsuit
The U.S. Securities and Exchange Commission (SEC) recently sued crypto exchange Coinbase, alleging that a dozen of the cryptocurrencies offered through its wallet or trading platforms were unregistered securities. In response, Coinbase claimed that these cryptos are not investment contracts and therefore not securities. Coinbase argued that cryptos on the exchange’s secondary market platform are not part of any arrangements where a promoter is selling an asset tied to a contract, referring to language in the Supreme Court’s precedent-setting Howey case.
Binance Denied Custody License By German Financial Watchdog
Germany’s financial watchdog has decided not to grant crypto exchange Binance a custody license, news publication Finance Forward reported on Thursday. It’s unclear if the denial was a formal decision from the Federal Financial Supervisory Authority (BaFin) or an intention expressed in ongoing discussions between Binance and BaFin. A spokesperson for Binance said they continue to work to comply with BaFin‘s requirements, but this process is detailed and ongoing as expected.
Compound Token Surge Over Past Four Days
The native token of decentralized finance (DeFi) protocol Compound (COMP) has surged by more than 50% over the past four days alongside a spike in volume and outflows on Binance. COMP was trading at $45.98 at press time, higher by 51.4% since Sunday and doubling in value since June 21st when it began surging after hitting rock bottom just two weeks prior at $22 per token price level .
Price Moves In Crypto Markets
The latest price moves in crypto markets paint Bitcoin up 0%, Ethereum down 0%. Other major coins such as Cardano decreased 0%, Litecoin down 0%. Uniswap dropped 2%, Polkadot decreased 1%. Dogecoin rose 3% while XRP gained 1%.
Crypto markets have been slowly rising this week despite some volatility due to recent legal developments involving Coinbase and Binance as well as massive gains seen for DeFi tokens such as Compound’s native coin COMP which doubled its value just within two weeks’ span .