Coinbase’s market share is on the rise in spite of SEC actions Coinbase’s market share is on the rise in spite of SEC actions
Several global asset manager signed an SSA agreement with Coinbase in spite of the SEC's litigation against the firm.
2 min read
Updated: Jul. 4, 2023 at 5:09 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Coinbase’s market share climbed to its highest point since January 2023 in June despite the U.S. Securities and Exchange Commission lawsuit against the firm, according to Kaiko data.
According to the chart below, Coinbase has consistently controlled around 50% of trading activities in U.S.-regulated exchanges since the beginning of the year. However, its market dominance witnessed a quick uptick in June, peaking at 64%, as the SEC filed charges against it and Binance over federal securities law violations.
Meanwhile, other U.S. platforms like Kraken and Bitstamp also increased their market share during this period.
Traditional financial institutions still in business with Coinbase
Despite the SEC’s lawsuit, several traditional financial institutions, including BlackRock, Fidelity, and ARK Investments, signed a surveillance-sharing agreement with Coinbase for their spot-Bitcoin exchange-traded fund (ETF) filing.
BlackRock, the world’s largest asset manager, chose Coinbase Custody as the custodian for its trust’s BTC holdings.
Messari founder Ryan Selkis suggested that these partnerships underscore Coinbase’s legitimacy as a U.S. financial institution, signaling a growing acceptance of cryptocurrency enterprises in the traditional financial sector
Pro-XRP lawyer John Deaton corroborated Selkis’s view, adding that over 2,000 Coinbase users have “joined to potentially be heard as amici curiae” in the SEC’s lawsuit against the crypto firm.
An amicus brief, commonly known as a “friend of the court” brief, is a written submission made by an individual or organization that is not directly involved as the plaintiff or defendant in a legal case but holds a substantial interest in the matter. The purpose of an amicus brief is to provide the court with additional perspectives and opinions that can potentially impact the final legal decision.
Binance US market share evaporates
The SEC lawsuit appears to have impacted Binance US severely as its market share plunged to less than 1% from a peak of 20% recorded in April.
Binance US, transitioning to a crypto-only platform, has faced significant liquidity issues after its banking partners halted their USD payment channels, posing challenges to its operations and affecting its market position.
On June 21, BTC flash-pumped to $138,000 due to its low market depth. Before then, the flagship digital asset traded at a 3% discount on the platform compared to other rival exchanges.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
Kraken
Kraken is a San Francisco-based digital asset exchange in euro volume and liquidity that trades various currencies, including Canadian dollars, US dollars, British pounds, and Japanese yen.
Bitstamp
Bitstamp is a European-based cryptocurrency marketplace that allows people from all around the world to buy and sell cryptocurrencies.
Messari
Messari is a fast growth startup in New York that is building the next generation data layer for the global cryptoasset community.
Ryan Selkis is the founder and CEO of Messari, a reliable data and market intelligence for crypto investors.
John Deaton is the founder and host of CryptoLaw which was launched in 2021 to provide digital asset holders with information, news, and analysis on key U.S.