Cryptos Drop As Legal Tussle With SEC Intensifies
Crypto markets continued to drift into negative territory early on Tuesday as the regulatory tussle between the SEC and the crypto industry intensified with Coinbase suing the SEC.
Popular cryptocurrency exchange Coinbase has sued the U.S. Securities Exchange Commission seeking a response to its earlier petition. Coinbase had filed a petition with the SEC in July 2022 seeking regulatory clarity on guidelines for the crypto industry. Crypto industry has been spooked by recent actions of the SEC which the industry says has adopted an approach of regulation by enforcement. Several crypto industry players including Coinbase has reportedly received Wells notice from the regulator which implies an impending enforcement action. What has also added to the angst in the industry is the apparent divergence between the regulatory stance adopted by SEC, the securities market regulator and CFTC, the commodities market regulator.
Sentiment from the stock market too did not suffice to cheer the cryptocurrency marketplace. Wall Street futures have edged lower ahead of tech earnings. Alphabet and Microsoft are slated to report after the bell. Lackluster trading continued at the major bourses in Asia as well as Europe on Tuesday amidst mixed corporate earnings updates. Banking major UBS reported a 52 percent drop in first quarter profit whereas Nestle and Novartis beat expectations.
The Dollar’s strength also exacerbated the decline in crypto markets. Dollar Index which measures the Dollar’s strength against a basket of 6 currencies increased 0.29 percent overnight to 101.64.
Overall crypto market capitalization dropped to $1.15 trillion versus $1.16 trillion a day earlier.
Bitcoin traded almost flat at $27,437.05. The day’s trading range for the cryptocurrency which dominates close to 46 percent of the overall crypto market was between $27,701.26 and $27,070.85.
Ethereum lost 1.1 percent overnight to trade at $1,829.41. The day’s trading range was between $1,874.11 and $1,807.74. Ether commands 19.1 percent of the overall crypto market.
4th ranked BNB (BNB) is currently changing hands at $331.09, down 0.23 percent on an overnight basis.
6th ranked XRP (XRP) and 7th ranked Cardano (ADA) have both lost more than 1 percent overnight.
8th ranked Dogecoin (DOGE) slipped a little less than half a percent in the past 24 hours.
9th ranked Polygon (MATIC) and 10th ranked Solana (SOL) have both lost more than 2 percent in the past 24 hours.
12th ranked Litecoin (LTC) is the highest-ranking cryptocurrency to trade in the overnight green zone. 20th ranked UNUS SED LEO (LEO) is the highest-ranking cryptocurrency to trade with weekly gains.
74th ranked Injective (INJ) gained more than 12 percent overnight. 57th ranked Chiliz (CHZ), 66th ranked Render Token (RNDR) and 25th ranked OKB (OKB) followed with gains of more than 3 percent.
84th ranked PancakeSwap (CAKE) extended losses with a 11 percent overnight decline. The decentralized exchange token has lost 27 percent in the past week and 16 percent in 2023.
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