Top Stories of the Week
Gensler chairman said the SEC’s reaction to Ripple’s decision was mixed, it is still under consideration
US Securities and Exchange Commission Chair Gary Gensler has commented publicly on the agency’s recent ruling on the agency’s lawsuit against Ripple, saying the SEC is “still looking at it and assessing that opinion.” Gensler declined to comment further on the case, but said the commission was pleased with the court’s decision that XRP was a security when sold to institutional investors, but disappointed with the decision as non-securities for retail investors and other distributions of XRP. Comments made by the regulator on July 21 in a lawsuit hinted that they might appeal the decision. However, within the crypto community, some believe that is unlikely as the SEC benefits from the “current confusion”.
A bipartisan bill to regulate DeFi, a crypto security risk introduced to the US Senate
A bipartisan bill introduced to the US Senate, tightening regulations and sanctioning requirements for decentralized finance (DeFi). The bill would subject DeFi operations to the same requirements as “other financial companies, including centralized crypto trading platforms, casinos and even pawnshops.” The proposal also makes “whoever controls the project” responsible for the sanctioned person’s use of DeFi services. The bill also sets new requirements for crypto kiosk (or ATM) operators to prevent their use in money laundering. Kiosk operators will be required to verify the identities of both counterparties in a transaction.
Altcoins ‘bleed’ as Bitcoin gains dominance in Q2: CoinGecko
The second quarter of the year was a solid quarter for Bitcoin’s performance as its market dominance increased against altcoins, which were “bleeding” throughout the period, according to industry report CoinGecko. Bitcoin (BTC) and Ether (ETH) have continued to build their market share over the past few months, while Binance Coin (BNB), XRP (XRP), and Cardano (ADA) suffered double-digit losses during the quarter. DeFi tokens were hit particularly hard during the quarter, with Uniswap (UNI), Chainlink (LINK), and Lido (LDO) also seeing double-digit losses. The top five metaverse and play-to-earn tokens by market cap also mark losses of up to 40%.
Several spot crypto ETF applications go to the Federal Register as a step toward SEC approval
Applications from several companies to place Bitcoin exchange-traded funds (ETFs) have been published on the Federal Register, moving them one step further in the US SEC process. According to records, applications from BlackRock, Fidelity, Invesco Galaxy, VanEck and WisdomTree are officially registered. Publishing an application gives the SEC an opportunity to accept or deny the request, extend the time allowed or open the application for public comment. The SEC has an initial 45-day window to reach a decision, but the commission has the option to extend the process by up to 240 days—until March 2024—for final approval or denial.
Robert F. Kennedy Jr. vowed to back the US dollar with Bitcoin if elected president
Democratic presidential candidate Robert F. Kennedy Jr. has promised to progressively back the United States dollar with Bitcoin if he is elected president. Kennedy said during the event that backing the US dollar with what he called “hard currency,” including gold, silver, platinum, or Bitcoin, could help re-stabilize the American economy. Kennedy explained that the process would be gradual and, depending on the success of the plan, he would adjust the amount of backing for the dollar. Additionally, Kennedy stated he would exempt Bitcoin-to-US dollar conversions from capital gains taxes in a bid to spur investment in the country.
Winners and Losers
At the end of the week, Bitcoin (BTC) was at $29,883, Ether (ETH) at $1,894 and XRP at $0.78. The total market capitalization is $1.2 trillion, according to to CoinMarketCap.
Among the 100 largest cryptocurrencies, the top three altcoin winners this week are Maker (MKR) at 32.18%, XDC Network (XDC) at 24.19% and Stellar (XLM) at 20.88%.
The top three losing altcoins this week are Rocket Pool (RPL) at -14.95%, GMX (GMX) at -10.93% and Lido DAO (LDO) at -7.90%.
For more info on crypto prices, be sure to read Cointelegraph’s market analysis.
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Most Memorable Quotes
“To me, the lack of protections for retail investors underscores the intense urgency to pass market structure legislation to protect the average American consumer.”
Ritchie Torres, New York Representative
“Japan, Korea, China, all these places are pushing Web3 in a very big way because they see it as an opportunity to break away from the technology that is basically dominant in the US.”
Yat Siu, co-founder of Animoca Brands
“Supporting the dollar and US debt obligations with hard assets [gold, silver, platinum or Bitcoin] can help restore some strength back to the dollar.”
Robert F. Kennedy Jr., candidate for president of the US Democratic Party
“Based on Metcalfe’s legal model, the fair value for Bitcoin is around $55K. So I think we’re drifting upward towards that level.
Mark Yusko, chief investment officer at Morgan Creek Capital
“[The Ripple ruling] has made our argument both more compelling and more pressing, which means that we cannot rely solely on law enforcement to get the kind of investor protection standards we need.”
Timothy Massad, former chairman of the US Commodity Futures Trading Commission
“The Commission is benefiting from the current confusion and losing this matter on appeal would jeopardize its entire enforcement agenda. So I would be surprised if the SEC tried to appeal now.”
Kathryn Haun, CEO of Haun Ventures
This Week’s Prediction
The move echoes Bitcoin Bollinger Bands that ended with a 40% gain in January
Bitcoin is lining up a volatility boom that could rival January’s 40% gain, according to on-chain data.
BTC price has been acting within a tight range for the entire month, using $30,000 as a focal point for sideways behavior, testing both bulls and bears. According to popular analyst Aksel Kibar:
“Looks like $BTCUSD is draining the patience of many traders,” he wrote on July 21, before adding that “usually the conditions you see before a move are strong. Not sure about the direction though. I will stick to my clear boundaries. I know that increased volatility is imminent. Capture directional movement.”
According to the behavior of Bollinger Bands, a classic volatility indicator, this move should be made sooner rather than later as it prints a sign that the days of rangebound BTC price action are over.
FUD of the Week
Crypto companies and influencers may need it to start including disclaimers on crypto memes to remain compliant with advertising laws in the UK. The country’s Financial Conduct Authority (FCA) released, on July 17, proposed guidance on social media finance promotion targeting promotional memes and financial influencers — or “financiers.” FCA considers crypto a high-risk investment. As per the FCA proposal, crypto can be advertised to retail investors in general, but there are requirements such as including a risk warning and prohibition of investment incentives.
Uniswap founder Hayden Adams’ Twitter account was compromised on July 20. His account released a tweet to his more than 254,000 followers falsely claiming that the platform’s Permit2 contract had been “affected by an unknown exploit” and that users’ tokens were at risk, encouraging them to click on malicious links. Telegram’s “Web3 Security Alert” channel detected the fraud attempt and reported that Adams has also been banned from his accounts with MetaMask and Coinbase Wallet.
The couple behind the Bitfinex money laundering scheme reached a plea agreement with US prosecutors
Two people accused of laundering billions of dollars worth of Bitcoin related to the 2016 Bitfinex hack have reached a plea agreement with authorities in the United States. The pair have been charged with money laundering and conspiracy to defraud the US, and they are expected to lose digital assets related to the case. Crypto exchange Bitfinex was hacked in August 2016, with around 119,754 Bitcoins stolen.
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Cointelegraph Magazine writer and reporter contributed to this article.