The SEC's recent legal action against Binance and its CEO has highlighted the ongoing conflict between regulators and cryptocurrencies. The accusation of "commingling" customer funds is especially damaging, as the SEC may seize any opportunity to attack Binance. Meanwhile, Senator Elizabeth Warren has indicated that she will reintroduce legislation on digital asset money laundering, which aims to close loopholes and collaborate with international jurisdictions. The SEC's timing in taking action against Binance is ironic, as June has been the worst month for crypto investors, with daily average returns ranking last from 2021-2023.

After news of the SEC's action against Binance, the market saw a 5.4% drop in prices with higher than average volume. Despite the struggles that bitcoin and crypto have faced in June, the assets themselves have remained relatively resilient compared to the entities being targeted. The decline following the SEC's Binance case is not among the top 50 worst-performing days. The battle between regulators and crypto is likely to continue to escalate, but the assets themselves are starting to withstand the impact better. Additionally, there are concerns about the future of Binance and the anti-crypto stance of SEC Chair Gary Gensler.