Many investors also tend to turn to bitcoin in times of uncertainty, considering it a relatively safe haven among crypto assets, and this time is no different. "The SEC has not said that BTC, ETH, or stablecoins generally are unregistered securities, and those assets account for at least 75% of crypto's total market cap," said Alex Thorn, Head of Firmwide Research at Galaxy Digital. Polygon Labs declined to comment.Ĭrypto's big guns were surprisingly resilient.īitcoin and ether weren't named in the SEC's lawsuit, nor were stablecoins such as tether and USC Coin.īitcoin and ether are still down about 4.5% and 8% respectively since the first SEC lawsuit was filed a week ago, though, indicating investors are still jittery about crypto. law but looked forward to working with regulators to gain further clarity. The Cardano Foundation and Solana Foundation told Reuters they disagreed with the SEC's classification of their tokens as a security under U.S. "It could fundamentally hinder their ability to gain funding from the U.S," said Lucas Kiely, chief investment officer of digital investment platform Yield App, adding this would likely impact the onboarding of developers and users. The SEC's classification is likely to hit investment interest for the blockchains underlying tokens like solana and cardano, both notable chains for developing decentralized finance and other applications, market players say. "It would certainly be a hurdle for exchanges to implement." "Securities can only be traded by brokers, and only on regulated exchanges, and only with clearing houses and transfer agents and physical certificates," Ryan Rasmussen, analyst at Bitwise Asset Management told the Reuters Global Markets Forum. That would make it more expensive both for individual tokens to operate and for crypto exchanges to list them. Market participants say other exchanges may follow suit. courts accept the SEC's classification remains to be seen, but the impacts are already being felt - Robinhood Markets has already said it will remove solana, cardano and polygon from its platform. crypto exchanges, leading to a forced closing of various altcoin pairs," said Vetle Lunde, senior analyst at K33 Research. "Security classifications would affect all U.S. Over 50 cryptocurrencies worth over $100 billion in total and making up about 10% of the overall market, are now viewed by the SEC watchdog as securities, according to CCData.Īmong major players, for example, solana, polygon and cardano have sunk between 23% and 32%. regulators against exchanges Binance and Coinbase last week, hammering the prices of the tokens. Insecurity reigns.Ī slew of altcoins - a catch-all for most cryptocurrencies except bitcoin and ether - have been harpooned in lawsuits filed by U.S.
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