2023-3-28 11:26 |
Coinspeaker
Bitcoin and Ethereum Drop as US Financial Regulators Intensifies Crackdown on Crypto Projects
Since the FTX and Alameda implosion late last year, which was described as the largest American corporate failure of the century, the United States financial regulators – including the SEC and the CFTC – have intensified their crackdown on cryptocurrency-related companies. More so, the centralized exchanges include Coinbase Global Inc (NASDAQ: COIN), KuCoin, and Binance. As a result, the crypto market led by Bitcoin and Ethereum prices lost their short-term upward momentum.
Already, the SEC has served Coinbase Global with a Wells notice regarding its staking and token listing programs. Notably, the SEC argues that crypto-staking programs are unregistered securities. Additionally, the United States financial regulators claim all digital assets apart from Bitcoin are unregistered securities.
“Today’s enforcement action reflects that the CFTC and its Enforcement Division will pursue those digital asset platforms and individuals who flout and actively attempt to circumvent CFTC regulatory requirements,” Gretchen Lowe, CFTC’s Enforcement Division Principal Deputy Director and Chief Counsel, noted.
Crypto market analysts think the recent charges on centralized exchanges, including Coinbase and Binance, will push Bitcoin and Ethereum prices to new lows, perhaps retesting last year’s ATL.
2/23
This is the case we've long heard rumored that Binance denied, and it is going straight for the jugular.
Points out specific action to broker US exposure to leveraged products despite access controls. pic.twitter.com/gcU56u7xmO
— Adam Cochran (adamscochran.eth) (@adamscochran) March 27, 2023
Bitcoin and Ethereum Prices and Wider Crypto MarketThe cryptocurrency market has been on a rising trajectory since the calendar flipped in January. However, analysts forecast the crypto market could turn bearish in the next couple of quarters. Fueled by the fear of ongoing crypto regulatory scrutiny, some analysts think Bitcoin and the rest of the digital asset market will make a new low before rising to the ATH.
Nonetheless, a different set of crypto analysts are convinced the industry will continue on a bullish sentiment fueled by the ongoing global banking crisis. Either way, cryptocurrency traders should prepare for increased volatility ahead.
According to the latest crypto market data provided by Binance-backed Coinmarketcap, Bitcoin price exchanged around $26.9k, down approximately 3.5 percent during the early Asian market.
The second largest digital asset by market capitalization, Ethereum (ETH), exchanges around $1,712, down approximately 3 percent today. BNB took the biggest hit with a decline of about 7 percent in the past 24 hours to trade around $307 on Tuesday.
The regulatory crackdown was highly anticipated based on the recent White House report to Congress, which called crypto highly volatile and unstable for investment. Furthermore, crypto industry players knew regulations are critical to mainstream adoption, which could drive the next bull rally.
With the United States controlling approximately 25 percent of global market activities, its stance on the crypto industry could trickle down to many other worldwide jurisdictions.
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