Report: Binance.US Market Share Plummets to Less Than 1% Following Regulatory Lawsuit

United States-based Cryptocurrency Exchange Binance.US Market Share Drops Below 1% Amid Regulatory Lawsuit

According to a recent report, Binance.US, a United States-based cryptocurrency exchange, has experienced a significant decline in its market share, dropping more than 20% due to an ongoing regulatory lawsuit. The data, sourced from Kaiko and reported by Reuters, reveals that Binance.US’s market share in the U.S. plummeted from over 22% in April to approximately 0.9% as of June 26.

The regulatory lawsuit involves the U.S. Securities and Exchange Commission (SEC) and accuses Binance.US, along with its parent company Binance and CEO Changpeng “CZ” Zhao, of operating as an unregistered securities exchange. The lawsuit was filed by the SEC in June, while the Commodity Futures Trading Commission had already initiated a similar legal action against Binance and CZ in March.

In comparison, Coinbase, another prominent cryptocurrency exchange, is also facing a lawsuit from the SEC. However, data provided by Reuters indicates that Coinbase’s market share in the U.S. actually increased from around 48% to 55% in June. This surge could be attributed to the fact that Coinbase was named as a surveillance partner in multiple SEC filings related to asset managers’ attempts to launch a spot Bitcoin exchange-traded fund in the United States.

On July 5, Cointelegraph reported that the combined trading volume of spot and derivatives on centralized exchanges exceeded $2.7 trillion. This significant increase in trading volume can partly be attributed to improved investor sentiment, driven by BlackRock’s filing for a spot Bitcoin ETF. It is worth noting that the SEC has yet to approve any spot cryptocurrency ETF in the United States, having rejected numerous applications from various firms.

Key Takeaways:

• United States-based cryptocurrency exchange Binance.US has seen its market share drop over 20% amid an ongoing regulatory lawsuit.
• Binance.US’s market share in the U.S. decreased from over 22% in April to approximately 0.9% by the end of June, according to data from Kaiko.
• The U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance.US, Binance, and CEO Changpeng “CZ” Zhao for allegedly operating as an unregistered securities exchange.
• Coinbase, another cryptocurrency exchange facing a lawsuit from the SEC, saw its market share in the U.S. increase from around 48% to 55% in June.
• The surge in Coinbase’s market share may be attributed to its inclusion as a surveillance partner in SEC filings related to asset managers’ attempts to launch a spot Bitcoin exchange-traded fund in the United States.
• The combined trading volume of spot and derivatives on centralized exchanges surpassed $2.7 trillion, driven by improved investor sentiment following BlackRock’s filing for a spot Bitcoin ETF.
• The SEC has not yet approved any spot cryptocurrency ETFs in the United States, rejecting multiple applications from various firms.