Bitcoin, Ethereum, and XRP Outlook as SEC Considers Cryptos as Securities
Bitcoin continued its upward trajectory, surpassing the $62,500 mark on Monday and maintaining its position above a crucial support level. The head of the US Securities and Exchange Commission (SEC) enforcement division, Gurbir Grewal, emphasized that the Howey test, a legal framework established by the US Supreme Court to determine if a transaction qualifies as an investment contract (security), is applicable to cryptocurrencies. This assertion underscores the regulatory scrutiny faced by digital assets.
In tandem with Bitcoin’s performance, Ethereum and XRP also saw positive movements, trading above key support levels and extending gains by close to 3% during the day. Grewal highlighted the importance of addressing crypto fraud by applying the principled definition of securities to digital assets, aligning with the SEC’s regulatory stance.
The clash between Grewal and Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam’s statements further underscored the ongoing debate on the classification of cryptocurrencies. Behnam’s assertion that a significant portion of cryptocurrencies, including Bitcoin and Ethereum, are commodities contrasts with Grewal’s position on the application of the Howey test to digital assets.
Bitcoin’s stability above $62,500 was reinforced by institutional interest, with the cryptocurrency recording substantial weekly inflows, amounting to $1.35 billion according to a recent report by Coinshares. Ethereum and XRP also held steady, trading above $3,100 and $0.533 respectively at the time of reporting.
FLOKI, a meme coin ranked among the top 100 assets by market capitalization, witnessed a surge in value, erasing previous losses from the second week of July. Trading at $0.000159, FLOKI is poised for further gains, potentially rallying to the lower boundary of the Fair Value Gap (FVG) at $0.000183 as indicated by the daily chart. Technical indicators such as the Moving Average Convergence Divergence (MACD) support this bullish outlook.
In the broader market context, the attempted assassination of former US President Donald Trump sparked a rally in cryptocurrencies, with traders speculating on the potential impact of Trump’s re-election in the November elections. Analysts at QCP Capital maintained a positive outlook on Bitcoin, citing sustained institutional demand reflected in significant inflows.
Industry developments included the denial of bail for Alex Pertsev, co-founder of Tornado Cash, convicted of laundering $1.2 billion through a crypto mixing service. Additionally, US presidential candidate Donald Trump’s scheduled appearance at a Bitcoin conference on July 27 garnered attention. Projects like Golem, which raised funds through an ICO in 2016, made significant transfers of Ether to major exchanges, underlining continued activity in the crypto space amidst regulatory and market dynamics.
