How Binance’s Battle with the CFTC is impacting Cryptocurrency Markets

The US Commodity Futures Trading Commission (CFTC) took legal action against the largest cryptocurrency exchange, Binance, on March 27. As a result, the digital asset market is showing bearish signs.

With the growing controversy among the cryptocurrency community, the top three cryptocurrencies have seen a significant price drop. For example, bitcoin (BTC) is down 3.2% over the past 24 hours and is trading at $27,133 as of writing.

The BTC price drop comes while the number of holders has increased steadily over the past three months. According to Glassnode, wallets containing 0.01 or more bitcoins have reached 11,718,623, marking a new all-time high (ATH).

However, the second largest crypto-asset, Ethereum (ETH), fell lower than Bitcoin. ETH is down by 0.8% over the past 24 hours and is currently trading around $1,750. According to Glassnode data, the number of Ethereum wallets received, on a seven-day average, has reached 10,271,375 marks, the highest level in five months.

Moreover, Binance’s native asset, BNB, was also not safe amid skirmishes with the US regulator. BNB is down by 6.29% in the last 24 hours and is trading at around $308 at the time of writing.

The CFTC’s regulatory efforts come just hours after Binance announced the opening of a web3 center in Georgia, a country at the intersection of Europe and Asia.

Binance CEO Changpeng Zhao (CZ) stated the exchange’s global regulatory compliance in response to the CFTC. He referred to the platform’s Know Your Customer (KYC) and Anti-Money Laundering (AML) policies.