HTX, a prominent cryptocurrency exchange formerly known as Huobi, reached a significant milestone on May 27, surpassing Coinbase's daily spot trading volumes for the first time. This achievement marks a notable shift in the crypto trading landscape. Justin Sun, a key figure behind TRON blockchain and an investor at HTX, shared this accomplishment on X, highlighting HTX's impressive trading volume of $1.81 billion in 24 hours, surpassing Coinbase's $1.58 billion.

However, according to recent data from CoinGecko, Coinbase has reclaimed its position, processing a trading volume of $2.2 billion in the past 24 hours, making it the third-largest crypto exchange globally, behind Bybit and OKX. HTX traded around $2.1 billion, placing it behind Coinbase. This fluctuation in trading volumes is noteworthy, especially considering the legal challenges Coinbase is currently facing in the United States.

The HTX exchange, one of the oldest and largest cryptocurrency exchanges, celebrated its 10-year anniversary in September 2023. To mark this milestone, the exchange underwent a rebranding from Huobi to HTX, a move that was met with controversy in the crypto community. Many drew parallels between HTX and the collapsed exchange FTX, citing the new name's connections to Huobi, TRON, and the exchange itself.

The temporary decline in Coinbase's spot trading volume occurred amidst its legal battle with the United States Securities and Exchange Commission (SEC). The SEC filed a lawsuit against Coinbase, accusing it of offering unregistered securities. The SEC claims that Coinbase failed to register as a broker, national securities exchange, or clearing agency, thereby circumventing regulatory disclosure requirements designed to protect securities markets.

*SEC's Lawsuit Against Coinbase*

The SEC's lawsuit against Coinbase is a significant development in the crypto regulatory landscape. The SEC alleges that Coinbase operated as an unregistered securities broker, exchange, and clearing agency, offering investments that are subject to SEC rules without proper registration. This lack of registration allowed Coinbase to escape oversight, including measures to prevent conflicts of interest.

Coinbase has argued that the rules are unclear and has called for legislation to develop fair rules for the crypto industry. The SEC, however, maintains that Coinbase was aware of the applicability of federal securities laws to its business activities but deliberately refused to follow them.

*Implications and Repercussions*

The legal battle between Coinbase and the SEC has far-reaching implications for the crypto industry. If the SEC prevails, it could set a precedent for increased regulatory oversight of crypto exchanges, potentially impacting the operations of other exchanges and the broader crypto market. Coinbase's loss in a recent Supreme Court case, albeit unrelated to its crypto business, may have implications for its legal standing in this matter.

The crypto community is closely watching the developments in this case, as it may shape the future of crypto regulation. Coinbase's efforts to challenge the SEC's decision and its call for legislative clarity highlight the ongoing struggle for regulatory certainty in the crypto space.

*Conclusion*

In conclusion, HTX's achievement in surpassing Coinbase's trading volume marks a significant milestone in the crypto exchange landscape. However, the legal challenges Coinbase faces with the SEC have far-reaching implications for the industry. As the regulatory environment continues to evolve, it is crucial for crypto exchanges, investors, and regulators to work together to establish clear guidelines and ensure a secure and transparent market for all participants.