In the latest Market Report episode, Marcel Pechman delves into the regulatory obstacles that have been hindering Bitcoin’s upward momentum, as well as speculating on the likelihood of a potential downturn to a $28,000 price level. The weekly show airs every Tuesday on the Cointelegraph Markets & Research YouTube channel.
The first point of discussion centers around Bittrex, a cryptocurrency exchange and its founder who have been charged by the United States Securities and Exchange Commission (SEC) for unregistered operations. The case sets a precedent for other non-compliant crypto market intermediaries, with Enforcement Division Director Gurbir Grewal explicitly warning that the SEC’s action should serve as a message to others. Marcel Pechman notes that this warning seems like a direct reference to Binance, Bybit, and OKX, which had been taking on U.S. clients through VPN and other means. He questions whether the SEC has a case against any other entities aside from Bittrex, besides imposing a large fine and potentially forcing the exchange to shut down operations in the United States.
The Market Report also delves into the recently proposed U.S. Congress draft stablecoin bill, which contains some concerning requirements. Among them, failure to register as an issuer can lead to up to five years in prison, and overseas issuers will have to register to do business in the United States. A two-year ban on creating, issuing, or originating stablecoins not backed by tangible assets is also proposed. Additionally, Pechman notes that the legislation strongly indicates that legislators do not want algorithmic-backed stablecoins or any operation that is not backed by U.S. dollars or U.S. denominated, short-term bonds. However, Pechman asserts that investors need not sell their stablecoins in a panic solely based on this information. While there could be impacts on Tether (USDT) and Dai (DAI), this will depend on voting and court rulings.
Lastly, Pechman discusses whether the U.S. court has any substantial power over Justin Sun, the founder of Tron. His insights include how this legal move could demonstrate regulatory desperation and coincidentally, how multiple agencies are pressing charges on crypto businesses and payment processors over five years after their launch. Given the current regulatory environment’s extreme fear, uncertainty, and doubt scenario, Pechman opines that a potential Bitcoin retest of $28,000 would not be surprising.
In conclusion, viewers can catch The Market Report every Tuesday on the Cointelegraph Markets & Research YouTube page. Liking and subscribing to the channel is encouraged for future videos and updates. As the regulatory landscape continuously evolves, it is essential to keep abreast of the latest developments to navigate the crypto market effectively.
