Crypto Community's Quest for Clarity
Crypto Community's Quest for Clarity
Coinbase's Plea for Clear Guidelines Ignored as SEC Delays Definitive Regulatory Framework for Cryptocurrency Sector
Coinbase and SEC
The Securities and Exchange Commission (SEC) has yet to make plans to supply Coinbase with final regulations. The prominent U.S. cryptocurrency exchange claims that the SEC has intentionally chosen to remain vague about industry-specific guidelines.
In July of the previous year, Coinbase approached the SEC with a well-articulated “petition for rulemaking,” requesting the regulatory body design and adopt a legitimate framework for digital asset securities. Alongside Coinbase, the broader U.S. cryptocurrency community is eagerly seeking transparency and certainty surrounding the regulatory treatment of digital assets.
The SEC has yet to address this request. Back in March, SEC Chair, Gary Gensler, commented that fair regulations for managing cryptocurrencies under securities law are already in existence. The SEC moved to reject the action earlier this month, asserting that “no statute or regulation requires the Commission to take such action on a specific timeline.”
Rather than providing sought-after guidelines, the SEC focuses on bringing companies to court over unregistered securities where clear guidelines are not in place. Crypto industry powerhouses, such as Ripple and Coinbase, have the financial resources to challenge the SEC and advocate for broader cryptocurrency adoption.
Ethereum and Bitcoin have experienced a slight cool-off in their momentum over the past week, maintaining a steady range for the past three weeks. These developments are attributed to concerns about the macroeconomic environment. In the last 30 days, BTC has seen a decline of 6.2%, currently trading at $26.45K, while Ethereum has dipped 3.3% and is currently trading at $1,807.
One contributing factor to reduced interest in BTC has been the strengthening of the US dollar, with the dollar-strength index reaching its highest level in two months at 104. Bitcoin remains bullish as long as it stays above the 200-week moving average, around $26.2K. A good rebound of support at this level could propel the price back to $30K, whereas a dip below the 200-day moving average might lead it toward $20K.
Significant macroeconomic events, including Hong Kong's plan to open trading for retail investors on June 1st, are unfolding. However, when considering the current market situation, the charts resemble previous cycles, suggesting that despite any current challenges, the overall outlook is considerably brighter compared to past cycles.
Exciting news has emerged as China Central Television recently aired a segment discussing cryptocurrencies. Hong Kong, an experimental financial district within China, now allows its residents to trade crypto. The list of coins available for trading includes popular options such as Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Polkadot, Solana, Cardano, Avalanche, Polygon, and Chainlink.
Given their historical path, it's intriguing to observe China's stance on crypto. They have taken a surprising step by launching a government-backed metaverse platform, which is remarkable considering their previous skepticism. This development indicates that China, despite its initial concerns, is gradually embracing the potential of cryptocurrencies. The influx of additional capital into the market makes this a highly intriguing and promising prospect for the future.
Ledger, a prominent crypto wallet provider, has decided to postpone the implementation of a key recovery feature due to the backlash from the community. The crypto community expressed disappointment with Ledger, prompting the CEO to address the concerns by stating that the company will only introduce the new feature once its code has been released.
In a recent announcement, Ledger unveiled a service designed to securely store encrypted backups of users seed phrases through the involvement of three trusted custodians. Additionally, as part of this service, Ledger users can opt-in for KYC (Know Your Customer) requirements.
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Not Financial Advice
Please note that all opinions in my newsletter are strictly my own and should not be considered financial advice. It is important to conduct your own research and make your own investment decisions. Always consult a qualified financial advisor before making any investment decisions.