In a shocking turn of events, the U.S. Securities and Exchange Commission (SEC) has filed lawsuits against BINANCE and COINBASE for alleged violations of federal securities laws. The SEC's actions, coming within 24 hours of each other, have sent ripples of pressure throughout the cryptocurrency market. Within just two days, the crypto market witnessed a significant dip, with the total market capitalization shrinking by approximately 5% to $1.1 trillion. On June 5, Binance's native token BNB plummeted by nearly 10%, while Bitcoin experienced a short-term drop of over $1,000, breaching the $26,000 threshold. Additionally, Coinbase's share price tumbled by 14% on June 6, exacerbating the market turmoil. 
US SEC Labels Over a Dozen Tokens as Securities, Including BNB, BUSD, SOL, ADA, and More In a surprising move, the US Securities and Exchange Commission (SEC) has accused Binance and Coinbase of engaging in unregistered securities offerings and sales. The SEC's allegations encompass a wide range of tokens, including BNB, BUSD, SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, COTI, AMP, REP, UST, and TRX. On June 6, the SEC filed a lawsuit against Coinbase, listing SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO as securities. The SEC has expanded its definition of securities to include staking programs, asserting that they are investment contracts. This implicates features like Binance's "BNB Vault," "Simple Earn," and the "staking" investment program on Binance.US. These developments have far-reaching implications for the entire cryptocurrency industry, as the identified tokens are widely traded on global exchanges. The convergence of traditional finance and the crypto market is prompting profound questions about the nature of cryptocurrencies and the quest for consensus within the realm of WEB3.0. US SEC Accuses Crypto Exchanges of Violating Securities Functions According to US SEC Chairman Gary Gensler, Coinbase and Binance are alleged to have mixed and provided exchange, broker-dealer, and clearinghouse functions in violation of securities trading rules. While Coinbase combines these functions without SEC registration, Binance allegedly provided them illegally without SEC registration. This raises the question of whether crypto exchanges should register separately for each function or adopt a comprehensive business registration approach. Achieving a positive balance in the industry's rapid development requires collaboration among global regulators, policymakers, and encryption partners. Binance and Coinbase Criticize SEC Lawsuits' Impact on the Industry: Both Binance and Coinbase have publicly responded to the lawsuit allegations, expressing their concerns about the SEC's regulatory approach towards Web3. Binance stated that its funds are secure, criticizing the SEC's strict supervision for complicating the situation. Binance emphasized its active cooperation during the investigation and the pursuit of a negotiated settlement. They expressed disappointment over the SEC's unilateral decision to file a lawsuit and label certain tokens and services as securities, even if other U.S. authorities have asserted jurisdiction.CZ, Binance's CEO, criticized the SEC for causing substantial financial losses to investors in the name of "investor protection."Coinbase's Chief Legal Officer, Paul Grewal, highlighted the lack of clear rules for the digital asset industry and criticized the SEC's enforcement-only approach, which he believes harms U.S. economic competitiveness. Grewal called for legislation that establishes fair and transparent rules, instead of relying on litigation. Coinbase intends to continue its operations unaffected. 
The SEC's lawsuits against major exchanges have caused significant pressure on the crypto market and sparked widespread market protests. However, Binance and Coinbase have not experienced substantial fund withdrawals so far. Positive signs can be observed on the MetaTdex trading platform, with the prices of various tokens, including BTC and TT, showing signs of recovery. SEC Explores Cryptocurrency Securities and the Rise of RWA: The recent allegations made by the SEC primarily revolve around unregistered exchanges and the unregistered issuance and sale of securities. These discussions have brought forth the concept of cryptocurrency securities, indicating a shift in the relationship between tokens and securities. The SEC's intentions, whether aimed at regulatory authority or blurring the boundaries between cryptocurrencies and securities, highlight the growing interconnectedness of traditional and digital assets. The emergence of Real World Assets (RWA) is becoming increasingly inevitable. RWA refers to assets existing off-chain that are tokenized and brought onto the blockchain. The stablecoin project BUSD, discussed within the context of cryptocurrency securities by the SEC, serves as a prominent example of an RWA project. Fiat-backed stablecoins like USDT, DAI, and USDC also fall under the category of RWA projects. RWA can represent a diverse range of traditional assets, including real estate, vehicles, securities, and more. Embracing the integration of traditional financial assets and cryptocurrencies, MetaTdex, as one of the top five decentralized exchanges globally, prioritizes platform compliance and innovation in the RWA space. It has obtained licenses such as MSB in the United States and DMCC in Dubai, while introducing the innovative RWA product, Currency Stock Connect.
