Thursday's revelation that the U.S. Securities and Exchange Commission was pursuing crypto market maker and liquidity provider Cumberland DRW did little to sway prices.
Although the leader, Bitcoin, temporarily fell, $60,000 Ahead of this news, the world's largest cryptocurrency has since found its footing, according to data from CoinGecko.
Perhaps that's because there's little fear the SEC might win, said Matt Hogan, Bitwise's chief investment officer. decryption on Thursday.
“The crypto market has learned from the likes of Ripple, Coinbase, and Grayscale that there is considerable opportunity if deep-pocketed companies are willing to take on the SEC in court,” he said. “Cumberland has made clear it intends to fight these charges, so I wouldn't be surprised if the market ignores this.”
On Thursday, the SEC indicted the Chicago-based cryptocurrency trading company on various securities charges. The regulator alleged in its complaint that Cumberland traded “cryptoassets offered and sold as investment contracts on third-party cryptoasset exchanges.”
But DRW, Cumberland's parent company and crypto arm, is already on this path. In 2018, the Commodity Futures Trading Commission charged the company with market manipulation.
The CFTC ultimately lost this battle, and the court sided with DRW, ruling that the regulator had “failed its burden of proof.”
regulator On Thursday, it also targeted several high-profile cryptocurrencies, including: Solana, polygon, cosmos, algorandand file coinclaims to treat those assets as securities. The SEC hinted at more, but stopped short, saying in its complaint that it provided a “non-exhaustive” list.
These assets seem to be holding up, remaining the least affected cryptocurrencies over the past 24 hours, and traders seem unfazed.
In any case, with SEC Chairman Gary Gensler's position becoming increasingly precarious under the weight of political pressure in Washington, some believe there is little room left for the SEC's top dog to flourish.
“Mr. Gensler’s hostility toward the industry is unlikely to result in a last-minute change of attitude, and it is almost certain that he will enter his final months in office,” said Ryan McMillin, chief investment officer at crypto fund manager Merkle Tree Capital. he said. decryption.
“I don't see him playing a role at the SEC under any administration, and I think the market sees it the same way,” he said.
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