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Coinbase's 20% Decline Leads Crypto Names Lower Following Report of SEC Probe
Bitcoin is lower by 3% on Tuesday, with ether and Solana's SOL down by about 7%.
Updated May 11, 2023, 4:18 p.m. Published Jul 26, 2022, 7:13 p.m.
Crypto exchange Coinbase (COIN) is plunging on Tuesday alongside sharp declines for cryptocurrencies following a Monday night report that the SEC is investigating the company for allowing Americans to trade in tokens that should have been registered as securities.
“Coinbase was considered one of the better-run crypto companies that tried to obey the rules and work with the regulatory bodies,” Edward Moya, senior markets analyst at Oanda said in a note Tuesday. “The risk of tougher regulation has been a constant headache for crypto, and it seems that a couple of tough rulings could cripple a good portion of the cryptoverse," he added. "If some cryptos are deemed securities, that would make the life of so many brokerages so much harder."
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While Coinbase is hardest hit, with a 20% drop late on Tuesday afternoon, related players like MicroStrategy (MSTR) and Marathon Digital (MARA) are also suffering sizable declines of roughly 11%.
Checking cryptocurrencies themselves, bitcoin (BTC) – possibly the only crypto the SEC may not deem a security – is outperforming with a 3% decline. Ether (ETH) and Solana's SOL (SOL) are off closer to 7%.
"While the digital asset industry was born and grew outside of any real scrutiny by the SEC, that appears to have changed," Tyler Gellasch, executive director of the Healthy Markets Association, told CoinDesk. "It’s an existential threat to crypto exchanges and brokers, because many of their current revenue streams are either likely dramatically reduced or outright prohibited in the securities world."
Read more: Jefferies Downgrades MicroStrategy to 'Underperform;' Shares Slump
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Exchange Review - March 2025
CoinDesk Data's monthly Exchange Review captures the key developments within the cryptocurrency exchange market. The report includes analyses that relate to exchange volumes, crypto derivatives trading, market segmentation by fees, fiat trading, and more.
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Trading activity softened in March as market uncertainty grew amid escalating tariff tensions between the U.S. and global trading partners. Centralized exchanges recorded their lowest combined trading volume since October, declining 6.24% to $6.79tn. This marked the third consecutive monthly decline across both market segments, with spot trading volume falling 14.1% to $1.98tn and derivatives trading slipping 2.56% to $4.81tn.
- Trading Volumes Decline for Third Consecutive Month: Combined spot and derivatives trading volume on centralized exchanges fell by 6.24% to $6.79tn in March 2025, reaching the lowest level since October. Both spot and derivatives markets recorded their third consecutive monthly decline, falling 14.1% and 2.56% to $1.98tn and $4.81tn respectively.
- Institutional Crypto Trading Volume on CME Falls 23.5%: In March, total derivatives trading volume on the CME exchange fell by 23.5% to $175bn, the lowest monthly volume since October 2024. CME's market share among derivatives exchanges dropped from 4.63% to 3.64%, suggesting declining institutional interest amid current macroeconomic conditions.
- Bybit Spot Market Share Slides in March: Spot trading volume on Bybit fell by 52.1% to $81.1bn in March, coinciding with decreased trading activity following the hack of the exchange's cold wallets in February. Bybit's spot market share dropped from 7.35% to 4.10%, its lowest since July 2023.
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