Gensler’s statement on Tuesday could bring regulatory news. XRP excludes comparison with the SEC chief. LTC is embroiled in a “pump-and-dump” hoax.
Ethereum was back to the $ 3,000 level after failing a week’s rally to the $ 3,600 level.
ETH price index
The cryptocurrency market is seeing bearish price sentiment due to the upcoming testimony of the chief of the security and exchange commission, Gary Gensler, before the US Senate and the banking committee.
Gensler recently said that he would support the issuance of an exchange-traded Bitcoin product, but it is also clear that he wants to take the wind out of the digital currency space with other regulations.
The key area the regulator is targeting is stablecoins and we could see comments on that tomorrow. Pennsylvania Republican Senator Pat Toomey recently asked Gensler if he believed stablecoins were securities as defined by the Supreme Court for an investment contract called the Howey Test. Gensler declined to give a true answer, saying “it could well be securities”.
Gensler also targeted the Coinbase exchange, saying that some of the coins listed on the broker platform could also be securities.
In July, Treasury Secretary Janet Yellen called on the President’s Working Group on Financial Markets to address the stablecoin threat to the financial system.
However, Gensler’s critics say the SEC chief is rushing to assert his agency’s authority over the market without legal justification. Dean Steinbeck, General Counsel of Horizen, told Marketwatch:
Gensler is very clear that the SEC is supposed to have unlimited powers over crypto.
Steinbeck added that he believes that crypto projects do not meet the requirements of the SEC’s Howey test, which states that investors must have a reasonable expectation of profits when buying securities.
Tomorrow’s testimony is being watched closely and should bring volatility to the market.
XRP was caught in SEC’s crossfire this year for the same reason that regulators accused the token of being a security.
However, Ripple’s legal team announced this week that it has no plans to reach an agreement with the regulator. They hope the chairman of the commission, Gary Gensler, will avoid investigating the case, which would mean picking winners and losers in the crypto business and adding complexity to the regulator’s role.
Ripple’s legal team told Fox Business that they have no plans to resolve disputes with the SEC over the XRP status lawsuit, and they are confident they can show that Gary Gensler picks winners and losers in the crypto business, which in his case at the expense of innovation.
In January, Ripple founder Brad Garlinghouse was asked why Ripple had not negotiated a settlement with the SEC. He answered:
I can’t go into the details, but I know we have tried – and will continue to try with the new administration – to address this issue so that the XRP community can continue to innovate, protect consumers, and maintain orderly markets .
XRP was also hit by declining activity this week, with the coin trading back below the $ 1.00 mark.
XRP price index
Another project that has come under regulatory constraints is the Celsius network.
Various US states recently took action against the cryptocurrency lending platform, accusing the company of providing unregistered securities to residents.
Cryptocurrency enthusiasts should be aware that this is a collective government attack on the crypto market to slow the progress of decentralized money and protect the interests of the existing financial system. I predicted that a long time ago.
On Friday, the Texas Securities Commission filed legal action against Celsius Network, expecting the company to explain why it shouldn’t be ordered to stop shipping its products to citizens. The trial is now scheduled for February 14, 2022.
In addition, the New Jersey Securities Commission on Friday ordered Celsius to stop shipping some of its products that the state considered unregistered securities. Alabama issued a similar order, asking Celsius to provide evidence as to why it should not be prevented from making its products available within the next 28 days.
Celsius had more than $ 24 billion in “community assets” in September, and the crypto company said those assets it managed would make it the world’s largest provider of interest accounts. The company offers its customers a return of almost 9% for deposits of US dollar stablecoins such as USD Coin and Tether and up to 6.2% for Bitcoin. This is a threat to the traditional financial system as interest-bearing accounts offer returns below 1% due to the central banks’ zero percent interest rate strategies.
CEL price index
The price of the CEL token has fallen to $ 5.00 on fears that depositors will cash out.
Finally, Litecoin got embroiled in a “pump-and-dump” pricing scam last week, alleging a fake report of a partnership with Walmart.
The bogus press release was published by GlobeNewswire and subsequently picked up by major financial outlets including Reuters and CNBC.
In a press release titled “Walmart Announces Major Partnership With Litecoin,” the world’s largest retailer plans to accept LTC as a payment method starting October 1st.
LTC price index
The price of Litecoin rose sharply after its release, with the coin rising 30% from $ 170 to over $ 230. However, a later publication by Walmart states that it has “no partnership” with the digital coin.
Walmart was unaware of the GlobeNewswire press release and there is no truth in it. Walmart has no relationship with Litecoin.
Litecoin has since been dragged down to trade around the $ 160 mark.
Disclaimer: The information contained herein is provided without taking your personal circumstances into account and should therefore not be construed as financial advice, investment recommendation, or as an offer or solicitation to conduct transactions in cryptocurrencies.
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