American
crypto exchange Coinbase is preparing for the court trial with the Exchange and
Securities Commission (SEC). The watchdog has issued a warning to Coinbase on
potential enforcement action. This action may potentially refer to any of
Coinbase products. The exchange has presented several legal regulation plans concerning
the industry to the SEC in the recent month, and also received two broker
licenses to operate within the existing legal framework, but was simply ignored
by the SEC with the potential lawsuit.
“We asked
the SEC specifically to identify which assets on our platforms they believe may
be securities, and they declined to do so,” Coinbase’s chief legal officer,
Paul Grewal, said in a blog.
Most
interesting is that the SEC is competing with the Commodity Futures Trading
Commission (CFTC) for the legal regulation of the crypto industry. Sec
considers crypto assets to be securities, while CFTC suggests that they are
commodities. Nasdaq may have something to say when it comes to this regulatory
dispute as the exchange is planning to launch a custodian service for digital
assets like BTC and ETH. The exchange tycoon could have strong ability to push
through its initiatives. So, the crypto community may receive some certainty in
regulation aspects.
Statista
reported that over 156 million or 11% of the population in India, are expected
to own cryptocurrency. Most of the holders will be educated young people who
earn middle-sized income between the ages of 18 and 40. Such kinds of news appears
regularly when the market is moving and bulls are trying to squeeze out more
profit. Thus, such reports saying that cryptocurrencies will soon become mainstream
and will be a safe haven alternative for large financial institution, are of
minor interest.
Fundaments
of the crypto market remain the same. Despite the turbulence in the banking
sector the Federal Reserve (Fed) continues to raise interest rates in order to
tackle inflation. So, Dollar funding remains expensive, and market activity of
institutions muted. The Eurozone banks have decreased landing by three billion Euros
amid raising interest rates and deposit outflows of 71 billion Euros. No wonder
Credit Suisse and Deutsche Bank stories may continue to appear. Investors have
no reasons to go into crypto assets during such a turbulent environment.
Long
operations for BTCUSD are seen to be very risky at the moment as prices hit a
strong resistance at $28,500 per coin. Technically, it would be hard to break this
glass ceiling. If this is true ,prices may roll back towards $20,200 per coin.