It’s been a challenging 24 hours for crypto investors, with most coins and tokens posting significant losses following the news that the US Securities and Exchange Commission (SEC) had filed a lawsuit against Binance and its CEO, Changpeng Zhao.

Bitcoin (BTC) and Ethereum (ETH) dropped by over 5% after the news broke, as investors opted to sell off their crypto assets.

However, there were some glimmers of hope for these investors, with several prominent crypto personalities continuing to back Wall Street Memes (WSM) – which has now surpassed $4.4 million in its presale.

SEC Cracks Down on Binance – What’s Next for the Crypto Market?

According to NPR, the SEC has filed 13 charges against Binance and Changpeng Zhao in what is being viewed as one of the most significant events in the crypto market this year.

Zhao and his company are accused of misleading investors, misusing client funds, unregistered token offerings, and other violations of securities laws.

Moreover, the SEC has asserted that Binance and Zhao were well aware of what they were doing, engaging in an extensive web of deception to benefit financially from investors’ actions.

Binance has denied all of the SEC’s allegations, stating that it has cooperated in the ongoing investigation and even attempted to settle. However, the SEC had other plans.

This move from the SEC highlights the growing scrutiny around the crypto market and its participants. These actions will likely have significant implications for US investors in the future – but also for the prices of major coins and tokens.

In the wake of these events, Bitcoin dropped to $25,400, its lowest value since mid-March, while Ethereum slumped to $1,780.

The following heatmap shows a sea of red, with only a handful of cryptos able to resist the bearish wave.

Many analysts now believe this could be the start of an extended downturn as US regulators continue to ramp up the pressure on the market.

However, such actions have been