Bitcoin, Ethereum, and crypto have all faced a regulatory backlash in the past week, with some fearing it's part of a plan to "quietly" ban bitcoin and crypto.
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Bitcoin prices fell to a yearly low of $24,000 per bitcoin last week, dragging down the prices of Ethereum and other major cryptocurrencies, pushing the crypto collective below the closely watched $1 trillion mark.
Today, despite a legendary trader making an amazing breakthrough in Bitcoin, Ethereum and crypto, fears are growing that a war against crypto is "starting".
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The US Securities and Exchange Commission (SEC) is cracking down on issuer Paxos, the largest so-called stablecoin, for selling BUSD.
On Monday, the New York Department of Financial Services (NYDFS) recognized Paxos as BUSD, the third stablecoin under the Binance brand, with a market cap of nearly $15 billion.
"The SEC's war on crypto has only just begun," Marcus Sotireau, a market analyst at digital asset brokerage GlobalBlock, said in an emailed statement.
Last week, major crypto exchange Kraken was forced to shut down its exchange services in the US after being fined $30 million by the SEC.
SEC Chairman Gary Gensler, who previously said he considered almost all cryptocurrencies to be securities that must be registered with his agency, said the allegations against Kraken "should be something everyone in the securities market should work on." crypts".
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However, some crypto market watchers are optimistic about the outlook for Bitcoin, Ethereum and other cryptocurrencies, predicting that it will test and fuel the Federal Reserve's rate hike programs in the coming days.
"While Bitcoin has shown general resistance in this rally since January 1st, we are now looking at a key level that should show in the coming days if the rally holds or if we see a major correction," Joe DePasquale. Bitbull Capital CEO Dr. By e-mail.
"After missing the $23,000 and $22,000 levels, bitcoin is now testing a downside that may try to rise to $23,000. If that fails, we will see the market leader at $20,000 very quickly. As usual, the market is sensitive to macroeconomic developments. .Accordingly, and with consumer prices expected to be higher than expected in December, the market can expect higher rates at the next [Fed meeting].
Meanwhile, Brian Armstrong, CEO of Kraken rival Coinbase, said the exchange would "like" to defend its cryptocurrency sharing service in court if necessary.
"Coinbase Stock Services are not securities," Armstrong tweeted.
"Regulation is also an issue for the crypto space, especially after the SEC fined the Kraken exchange $30 million," DiPasquale added. "However, we believe that light regulation in a sluggish market is better than strict development in a full bull market."