In Asian trading on Tuesday, Bitcoin experienced a slight increase but fell short of breaking through the $26,000 barrier. Ether, on the other hand, slipped. Among the top 10 cryptocurrencies by market capitalization, Solana and Binance’s BNB token suffered the greatest losses. Meanwhile, the chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, reaffirmed his stance on suing crypto exchanges, while Ripple awaited the release of crucial evidence in its legal battle with the SEC.
Bitcoin’s Mild Rise and Ether’s Slip :
Over the past 24 hours, Bitcoin rose by 0.12%, reaching $25,928 at 7:00 a.m. in Hong Kong. This marks an overall gain of 0.8% in the last seven days. In contrast, Ether experienced a 0.66% decline, settling at $1,742, and posting a loss of 3.6% for the week.
SEC Lawsuits and Losers in the Cryptocurrency Market :
Among the top 10 cryptocurrencies, Solana and Binance’s BNB token faced the greatest setbacks. Last week, the SEC classified these two tokens, along with others, as illegally issued financial securities, leading to lawsuits against Coinbase and Binance.US. Solana recorded a weekly slump of 23.98%, losing 2.18% to settle at $15.20. The BNB token saw a drop of 16.08% over the past week, falling 2.19% to $230.60. While Polygon and Cardano gained modestly, they remained down more than 20% since the SEC’s actions.
Gary Gensler’s Stance and Backlash:
SEC Chairman Gary Gensler reiterated the agency’s commitment to strict regulation of the crypto sector in a recent Twitter post. However, his move to sue crypto exchanges faced growing backlash, with the hashtag #FireGaryGensler trending on Twitter in Asia. Republican Congressman Warren Davidson even introduced a bill to restructure the SEC and remove Gensler. Charlie Morris, the managing partner of CMCC Global, expressed concerns about the U.S. approach, highlighting positive developments in regions like the UK and Hong Kong that welcome the digital asset sector.
Ripple’s Legal Battle and Awaited Evidence:
Ripple, locked in a legal battle with the SEC since December 2020, anticipated the release of the “Hinman documents,” which could influence their fair notice defense. Ripple CEO Brad Garlinghouse expressed optimism about the unsealing of these documents. The outcome of the Ripple-SEC case carries significant implications for how U.S. authorities categorize cryptocurrencies.
Impact on the Crypto Market and NFT Challenges:
The overall cryptocurrency market cap decreased by 0.58% to $1.05 trillion in the past 24 hours, while daily trading volume surged by 26.85% to $30.58 billion. In the NFT market, the Forkast 500 NFT index suffered a 1.64% loss, reflecting a 9.69% decline for the week. Total NFT sales fell by 10.56% to $19.3 million, with Ethereum-based sales dropping by 18.31% to $11.49 million. Yehudah Petscher, NFT Strategist at Forkast Labs, attributed the struggling market to low ETH volume and the impact of SEC filings.
As Bitcoin made slight gains and Ether slipped, the crypto market experienced both positive and negative developments. The SEC’s lawsuits against crypto exchanges continued to stir controversy, with growing opposition to Chairman Gary Gensler’s regulatory approach. Ripple’s legal battle with the SEC reached a crucial point as they awaited the release of influential evidence. Meanwhile, the NFT market faced challenges, including a decline in sales and a struggling ETH volume, affected by the SEC’s actions. These developments highlight the ongoing evolution and regulatory landscape of the crypto industry.