The crypto market appears to be recovering from last week’s slump as this week showed that U.S. inflation cooled to 4%, which is more or less in line with expectations. On Wednesday, the Fed chose not to raise interest rates at a meeting for the first time in eighteen months. This development seems to have influenced leading cryptocurrencies to trade sideways but eventually gain some traction as the weekend approached. Bitcoin posted a slight gain of 3% over the last seven days to trade at $26,428 on Saturday. Meanwhile, Ethereum lost 0.6% over the same timeframe and currently trades at $1,725.
Surprisingly, the majority of leading cryptocurrencies reported nominal gains this week, with several posting significant increases, including Filecoin (FIL), Cosmos Hub (ATOM), Uniswap (UNI), and Polygon (MATIC). This happened despite the ongoing escalation of the U.S. Securities and Exchange Commission’s (SEC) enforcement actions on the industry.
In terms of notable events, Binance has been in the spotlight due to its legal battle with the SEC. The week started with news of Binance hiring George Canellos, a former co-director of the SEC’s Division of Enforcement, to help defend itself against 13 civil charges from the regulator, including operating as an unlicensed securities exchange. In response, popular trading applications like eToro and Robinhood delisted certain cryptocurrencies due to their labeling as securities in the SEC’s lawsuit against Binance.
As the week passed, Binance continued its fight, filing over 20 motions in opposition to the SEC’s lawsuit. The company faced additional challenges in Europe, as it had to withdraw from Cyprus and the Netherlands while enduring increased scrutiny from French authorities for “aggravated money laundering” allegations. However, a judge has now approved a consent agreement between Binance and the SEC, which is described by a former SEC official as “burdensome, awkward, and inconvenient.”
Meanwhile, the SEC was not the only organization in Washington discussing crypto this week. On Tuesday, a U.S. Treasury Department representative highlighted the ongoing evaluation of a potential central bank digital currency (CBDC) by an interagency working group. Additionally, the pro-crypto House Majority Whip, Rep. Tom Emmer (R-MN), along with Rep. Warren Davidson (R-Ohio), took steps to challenge SEC Chairman Gary Gensler, accusing him of encouraging a heavy-handed approach toward the crypto industry.
Furthermore, crypto executives came together before Congress to support a draft bill to regulate cryptocurrencies. The bill was praised for outlining clearer registration requirements for trading platforms with either the SEC or the CFTC, which many in the industry agree are sorely needed. With events like these unfolding, it’s clear that the ongoing debate around crypto regulation continues to take center stage in determining the future of this burgeoning market.
Source: Decrypt
