Bitcoin hovers near 2-1/2 month low as Binance SEC lawsuit rattles investors

Bitcoin stabilized on Tuesday after a significant drop overnight, following the news that the U.S. Securities and Exchange Commission (SEC) sued Binance, the world’s largest cryptocurrency exchange, and its CEO, Changpeng Zhao, alleging they evaded U.S. laws. The lawsuit against Binance marks the latest development in the SEC’s crackdown on the crypto industry. The heightened scrutiny may cause some crypto companies to increase compliance measures, spike products, and expand outside the United States, prompting the crypto and fintech industries to pay close attention. If stablecoins are deemed securities, it could kill retail interest in key cryptos and benefit Bitcoin.