According to data from Kaiko, US cryptocurrency exchange Binance.US has reportedly experienced a significant decline in its market share, dropping from over 22% in April to approximately 0.9% as of June 26. The decline is said to be a result of a lawsuit filed by federal financial regulators against Binance.US, Binance, and its CEO Changpeng Zhao, alleging connections to unregistered securities exchange operations. In March, the Commodity Futures Trading Commission also charged Binance. Similar lawsuits have been filed by Binance CZ.
In contrast, Coinbase, another major US cryptocurrency exchange, saw an increase in its market share from around 48% to 55% in June. Reuters reports that this surge may be attributed to Coinbase being listed as a surveillance partner by asset managers seeking to launch a spot bitcoin exchange-traded fund (ETF) in the United States. Coinbase is also facing a lawsuit from the Securities and Exchange Commission (SEC), similar to the one filed against Binance.US.
Combined spot and derivatives trading volumes on centralized exchanges have reportedly surpassed $2.7 trillion, as per the latest data. The rise in trading activity is attributed, in part, to growing investor sentiment following BlackRock's filing for a spot bitcoin ETF. The SEC has yet to approve any spot cryptocurrency ETF in the US, having rejected numerous applications from various firms.
The legal actions and regulatory scrutiny against Binance.US and Coinbase highlight the challenges faced by cryptocurrency exchanges in the United States. While Binance.US has experienced a substantial market share decline, Coinbase has managed to maintain and even expand its dominance in the US market . The approval of a spot bitcoin ETF by the SEC remains uncertain, as the regulatory landscape for cryptocurrencies continues to evolve.
