Crypto exchange Coinbase (COIN) filed a motion in a US court on Monday asking the Securities and Exchange Commission (SEC) to respond to a petition it filed in 2020 seeking formal rules for digital assets. This includes cclarification over whether or not existing SEC securities laws should apply to digital assets. The move comes after the SEC sent a warning to Coinbase last month indicating that it intended to sue the exchange over allegations that it had offered and listed securities that were unregistered.
Coinbase and the SEC come to another head
In their latest clash since the SEC’s ominous letter last month, Coinbase has fought back by filing a motion imploring the SEC to respond to their request for clarification of digital asset regulations. Coinbase has warned it could suffer extensive losses in the event of regulatory action aimed at forcing the company to remove its currently global offerings until the business complies with purported legal requirements. Coinbase was allegedly warned in relation to its Lend programme, with the suggestion that further clarification of securities rules are required at a federal level.
The SEC has stated it is concerned that related virtual assets including the CBSE might have confused or misled regulatory systems aimed at older, traditional financing methods. The results of any decision party to come before the court could have weighty ramifications both for the future of the three-year-old Coinbase, as well as the wider cryptocurrency market if it follows along closely. Coinbase has already made headlines in other areas over the weeks with rumours that the company is considering backing away from plans to offer crypto teams .
Bitcoin moves, chart predictions and trends
Senior market analyst at FxPro, Alex Kuptsikevich, mentioned bitcoin’s approaching 50-day period simple moving average (SMA)as a potential deciding factor, stating that “a breach under this point would cast doubt upon the durability of the bull momentum while clumping under $26,600 could lead to a deeper decline.” Despite the precipitous drop to $27,244 from highs of $31,000 reported for bitcoin last week, Standard Chartered believes that crypto’s dark skies have cleared entirely, and CCN reports that the bank isn’t stopping there, as they say that bitcoin may easily reach $100k by yearend. Commentators are keeping an invested eye oncentrlized exchange flows. The Block Friday letter reveals that exchange balance dropped in the final week by a net 24.6k Bitcoin, with funding gaps at Bitfinex indicating that more funding has been utilized for BTC borrowing to hedge against such potential item portfolio threats this previous week rather than for greater net purchases of BTC. Coincidentally or not, Bitcoin institutional trading drops have started showing minor signs of life again.
As usual, cryptocoins can possess a slightly misleading truth function, with trends highlighted on The SMA Difference Standing Out graph implying constant mid-figure standings currently compared to Bitcoin prices noting major crushing points taking place comparably.
[h/t Lyllah Ledesma, Omkar Godbole]