Bitcoin lightning strikes Binance: Faster, cheaper BTC transactions en route
- Binance announced integration of Bitcoin lightning network.
- New entrant joined the legal battle of SEC and Binance, representing the customers on the exchange.
The recent lawsuit filed against Binance[BNB] by the SEC has led to significant FUD surrounding the exchange. However, ongoing developments hold the potential to enhance the overall state of the protocol in the future.
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Struck by lightning
Recently, Binance announced the integration of the lightning network on its protocol. For context, the Bitcoin Lightning Network is a Layer 2 solution for Bitcoin that enhances the speed and cost-effectiveness of Bitcoin transactions. Utilizing specialized channels, it improves the overall efficiency of the network, enabling faster and cheaper peer-to-peer transactions.
This move may help improve the overall sentiment around Binance which was affected negatively by the SEC lawsuit. At press time, the weighted sentiment around Binance was negative, according to Santiment’s data.
However, this metric was slowly moving in a positive direction over the last week, indicating that the negativity around Binance has slowly declined.
Additionally, there has been an observed drop in social dominance over the last week, which suggested a decrease in discussions about the exchange on social media platforms.
The sentiment and social dominance surrounding the exchange in the future will be determined by the developments on the Binance exchange and the progress of the SEC lawsuit.
A third party makes an appearance
In addition to Binance and the SEC, a third party joined the legal battle. A Nevada-based legal entity named “Eeon” filed a motion to intervene in the US Securities and Exchange Commission v. Binance Holdings lawsuit, as per the District Court for the District of Columbia filing.
The petitioner contended that neither the SEC nor Binance attorneys have adequately represented the interests of customers, prompting their intervention on behalf of customers’ interests.
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Eeon asserted that cryptocurrencies should be classified as commodities, citing their use for personal purposes rather than commercial activities. As these commodities fall under a new category without specific regulations, the SEC’s jurisdiction over cryptocurrencies is challenged.
Furthermore, Eeon also accused Binance of controlling users’ access to their crypto assets by holding the keys and blocking withdrawals without adequate notice, placing blame on the SEC for negatively impacting investors. The party further requested a court order to grant customers access to their frozen assets on the platform.