Bitcoin Inches Up, SEC Lawsuits Rock Crypto Exchanges, and NFT Markets Face Challenges
In Asian trading on Tuesday, Bitcoin saw a slight increase but failed to break the $26,000 barrier. Ether, on the other hand, slipped. Among the top 10 cryptocurrencies by market cap, BNB tokens Solana and Binance suffered the biggest losses. Meanwhile, the chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, reiterated his stance on suing crypto exchanges, while Ripple awaits the release of key evidence in its legal battle with the SEC.
Bitcoin Mild Rise and Ether Slip:
Over the last 24 hours, Bitcoin was up 0.12%, reaching $25,928 as of 7:00 am in Hong Kong. This marks an overall gain of 0.8% in the last seven days. In contrast, Ether lost 0.66%, settled at $1,742, and posted a 3.6% loss for the week.
SEC Lawsuits and Losers in the Cryptocurrency Market:
Among the top 10 cryptocurrencies, BNB tokens Solana and Binance faced the biggest setbacks. Last week, the SEC classified these two tokens, along with others, as illegally issued financial securities, leading to lawsuits against Coinbase and Binance.US. Solana registered a weekly loss of 23.98%, dropping 2.18% to settle at $15.20. The BNB token has lost 16.08% over the past week, dropping 2.19% to $230.60. While Polygon and Cardano are up slightly, they remain down more than 20% since the SEC action.
Gary Gensler’s Standing and Reaction:
SEC Chairman Gary Gensler reaffirmed the agency’s commitment to strict regulation of the crypto sector in a recent Twitter post. However, his moves to sue crypto exchanges faced growing backlash, with the hashtag #FireGaryGensler trending on Twitter in Asia. Republican Congressman Warren Davidson even introduced a bill to restructure the SEC and abolish Gensler. Charlie Morris, managing partner of CMCC Global, expressed concern about the US approach, highlighting positive developments in regions such as the UK and Hong Kong that have welcomed the digital asset sector.
Ripple’s Legal Battles and Evidence Awaited:
Ripple, which has been engaged in a legal battle with the SEC since December 2020, anticipates the release of the “Hinman documents”, which could affect their fair notification defense. Ripple CEO Brad Garlinghouse expressed optimism about the unsealing of these documents. The outcome of the Ripple-SEC case has significant implications for the way US authorities categorize cryptocurrencies.
Impact on Crypto Markets and NFT Challenges:
The overall cryptocurrency market cap decreased by 0.58% to $1.05 trillion in the last 24 hours, while daily trading volume jumped by 26.85% to $30.58 billion. In the NFT market, the Forkast 500 NFT index fell 1.64%, reflecting a 9.69% decline for the week. Total NFT sales fell 10.56% to $19.3 million, with Ethereum-based sales dropping 18.31% to $11.49 million. Yehudah Petscher, NFT Strategist at Forkast Labs, attributes the struggling market to low ETH volumes and the impact of SEC filings.
As Bitcoin gains a bit and Ether slips, the crypto market is experiencing both positive and negative developments. The SEC’s lawsuits against crypto exchanges continue to stir up controversy, with growing opposition to Chairman Gary Gensler’s regulatory approach. Ripple’s legal battle with the SEC reaches a crucial point as they await the release of influential evidence. Meanwhile, the NFT market faces challenges, including declining sales and ETH volume difficulties, which were impacted by the SEC’s actions. These developments highlight the ongoing evolution and regulatory landscape of the crypto industry.
