In short: The U.S. SEC filed lawsuits against Binance and Coinbase, causing a drop in prices of all assets. However, BTC and ETH seem to be recovering as the lawsuits' impact is priced in. The SEC left out BTC, ETH, and Ripple from its list of tokens named as securities, potentially signaling less risk and more upside in these commodities. If the SEC's legal theory prevails in court, Coinbase and Binance may need to comply with SEC rules to protect retail investors.
Our quick analysis:
The U.S. Securities and Exchange Commission is cracking down on crypto exchanges, as shown by its recent lawsuits against Binance and Coinbase. While this has caused a dip in altcoin prices, the SEC has left Bitcoin and Ethereum untouched, leading to potential bullish outcomes for these two cryptocurrencies.
Despite the initial plunge in prices after news of the lawsuits broke, BTC and ETH have quickly rebounded. BTC has already bounced back and is up 2.75% over the past five days, with the lawsuits already priced into the market. On the other hand, ETH experienced a significant rally, with prices jumping from $1,800 to $1,890 before the session turned over, resulting in a 5% intraday gain.
Interestingly, the SEC has not named BTC, ETH, or even Ripple as securities in either the Binance or Coinbase lawsuit. This could lead to a less risky and more lucrative market for these cryptocurrencies, making them more attractive to retail investors and institutions.
The SEC's reluctance to push their luck with these cryptocurrencies is incredibly bullish for XRP, ETH, and BTC. Even though the legal battles may result in crypto exchanges having to comply with the rules set up by the SEC, the potential outcome for Bitcoin and Ethereum is looking bright.
It's important to note that the legal theory of the SEC's lawsuits against the crypto exchanges hinges on a 90-year-old law - the Securities Act of 1933. The agency is using this law in combination with the "Howey test" from a 1946 Supreme Court decision to persuade U.S. courts that many cryptocurrencies offered for sale meet the legal definition of securities.
In conclusion, while the SEC's lawsuits may have caused some panic in the crypto market, it seems that BTC and ETH have remained unaffected, and may even benefit from the regulatory scrutiny. As always, it's important to keep an eye on any new developments in the ongoing legal battles.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
Our quick analysis:
The U.S. Securities and Exchange Commission is cracking down on crypto exchanges, as shown by its recent lawsuits against Binance and Coinbase. While this has caused a dip in altcoin prices, the SEC has left Bitcoin and Ethereum untouched, leading to potential bullish outcomes for these two cryptocurrencies.
Despite the initial plunge in prices after news of the lawsuits broke, BTC and ETH have quickly rebounded. BTC has already bounced back and is up 2.75% over the past five days, with the lawsuits already priced into the market. On the other hand, ETH experienced a significant rally, with prices jumping from $1,800 to $1,890 before the session turned over, resulting in a 5% intraday gain.
Interestingly, the SEC has not named BTC, ETH, or even Ripple as securities in either the Binance or Coinbase lawsuit. This could lead to a less risky and more lucrative market for these cryptocurrencies, making them more attractive to retail investors and institutions.
The SEC's reluctance to push their luck with these cryptocurrencies is incredibly bullish for XRP, ETH, and BTC. Even though the legal battles may result in crypto exchanges having to comply with the rules set up by the SEC, the potential outcome for Bitcoin and Ethereum is looking bright.
It's important to note that the legal theory of the SEC's lawsuits against the crypto exchanges hinges on a 90-year-old law - the Securities Act of 1933. The agency is using this law in combination with the "Howey test" from a 1946 Supreme Court decision to persuade U.S. courts that many cryptocurrencies offered for sale meet the legal definition of securities.
In conclusion, while the SEC's lawsuits may have caused some panic in the crypto market, it seems that BTC and ETH have remained unaffected, and may even benefit from the regulatory scrutiny. As always, it's important to keep an eye on any new developments in the ongoing legal battles.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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