Cryptocurrency prices have dropped after the U.S. Securities and Exchange Commission (SEC) charged Binance, the world's largest crypto exchange, with violating securities laws. Bitcoin fell about 5.5% to $25,719.60, and Ether slid 5% to $1,806.68. The SEC alleged that Binance and its cofounder, Changpeng Zhao, violated securities laws by comingling billions of dollars of investor funds with their own. This follows a similar lawsuit from the Commodity Futures Trading Commission earlier this year. The suit is the latest in U.S. regulators' crackdown on the crypto industry this year. The SEC has charged Kraken, Genesis, and Gemini Trust with offering unregistered securities to investors and has warned Coinbase of potential securities charges.
Bitcoin had its worst month of trading since November, finishing May down 7.9% after trading in a narrow range of between $26,000 and $28,000. Technical analysts see $25,200 as the key level to watch for bitcoin on the downside. A worsening macroeconomic climate and the collapse of industry giants like FTX and Terra have also weighed on bitcoin's price this year.