In a whirlwind week for the cryptocurrency market, Bitcoin has risen amidst legal storms targeting top crypto exchanges Binance and Coinbase by the U.S. Securities and Exchange Commission (SEC).
The SEC accused Binance and Coinbase of offering unregistered securities to the public, triggering a market downturn that saw Bitcoin tumble to near $25,400. Yet, the market resilience was palpable as Bitcoin, alongside other cryptocurrencies, started gaining traction.
The premier cryptocurrency bounced back to surpass $27,000, marking a significant recovery after a mass sell-off on Monday.
While the broader crypto market also witnessed a recovery, the gains were relatively less significant compared to BTC. Ethereum (ETH), the second-largest cryptocurrency by market value, traded slightly below $1,900, reflecting a 4.5% increase from Monday.
Cardano (ADA) and Solana (SOL) tokens also rose more than 1% after experiencing declines of over 8% and 10%, respectively. Binance’s native token, BNB, saw positive gains, while Polygon’s MATIC was down 1%. In the two lawsuits, the SEC identified these tokens, along with sixty-three others, as unregistered securities.
A key observation from the lawsuits was the SEC’s omission of Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization, from its filings. This can be seen as an indirect validation of these tokens as commodities, a reassuring signal to investors.
“If there’s real value in these crypto tokens, then compliance will build trust and the business model might change.”, stated SEC Chair Gary Gensler.
He emphasized that the SEC’s actions are pro-innovation for the betterment of capital markets.
Gensler also highlighted the need for the crypto industry to comply with regulatory requirements, stating that the SEC is ready to work with cryptocurrency firms to achieve compliance.
Despite the regulatory uncertainties, the crypto market remains buoyant, demonstrating the robust interest and trust in Bitcoin and other digital assets.
This news, however, is still developing and more information will be provided as further details emerge.
