Anticipated Impact of SEC Designation on Bitcoin, Ethereum, and XRP
Bitcoin, Ethereum, and XRP continue to show strength in the market, with Bitcoin trading above $62,500 and holding onto key support levels. The head of the US Securities & Exchange Commission’s enforcement division, Gurbir Grewal, recently highlighted that the Howey test, a legal standard used to determine if a transaction qualifies as an investment contract, is applicable to cryptocurrencies. This means that certain crypto transactions could fall under SEC regulation.
Grewal emphasized the importance of addressing crypto fraud and pointed out that courts have consistently upheld the application of the Howey test to cryptocurrencies. This stance contrasts with the Commodity Futures Trading Commission Chair Rostin Behnam’s view that a significant portion of cryptocurrencies, including Bitcoin and Ethereum, should be classified as commodities.
Bitcoin maintained its position above $62,500, while Ethereum and XRP saw gains, trading above $3,100 and $0.533, respectively. Notably, Bitcoin experienced substantial institutional inflows, with $1.35 billion pouring into BTC funds, marking the fifth-largest weekly inflow on record. Despite the ongoing debate between regulatory bodies, Bitcoin, Ethereum, and XRP remained stable in the market.
In the realm of altcoins, FLOKI, a meme coin ranked in the top 100 by market capitalization, surged to $0.000159, erasing previous losses from July. Analysts predict a potential 15% increase for FLOKI, with indicators like the Moving Average Convergence Divergence (MACD) signaling a positive trend. In case of a correction, FLOKI could find support at $0.000144, based on recent price action.
Recent market events saw a rally in cryptocurrencies following speculation around former US President Donald Trump’s potential re-election. Analysts at QCP Capital maintained a bullish outlook on Bitcoin due to sustained institutional demand. Additionally, Scroll emerged as one of the top 10 Ethereum Layer 2 protocols, with a significant increase in the total value of locked cryptocurrencies, reaching $1.01 billion.
In industry updates, Alex Pertsev, co-founder of Tornado Cash, faced legal repercussions for alleged money laundering activities involving a crypto mixing service. On a different note, US presidential candidate Donald Trump is expected to speak at a Bitcoin conference later this month, generating buzz within the crypto community. Meanwhile, the Golem project, which conducted an ICO in 2016, transferred a substantial amount of Ether to major exchanges, holding a significant value in Ethereum.
These developments underscore the dynamic nature of the cryptocurrency market, where regulatory clarity, market sentiment, and technological advancements continue to shape the landscape for investors and enthusiasts alike.
