The Crypto Industry Scored Another Victory Against the SEC, Helping Bitcoin

The crypto industry is facing a tough regulatory environment in the US, where the Securities and Exchanges Commission has adopted an aggressive stance, but its approach has faced challenges by unfavorable court decisions. Most notably, in mid-July, a US court judged that Ripple's XPR is not a security in certain instances. Another judge however in a different case shortly after, opined that some cryptocurrencies are in fact securities [1], highlighting the complicated nature of the matter.

The crypto world scored another victory against the SEC this week, since a panel of the District of Columbia Court of Appeals ruled against the SEC's decision to reject Grayscale filing for a Bitcoin ETF. The court found the denial "arbitrary and capricious" and ordered the agency to review the application. [2]

Tuesday's decision paves the way for crypto ETFs, with more companies such as Blackrock, having filed for similar products. Digital coins reacted positively to the news, with BTC/USD and CryptoMajor jumping on the news.

BTC/USD strengthened more than 6% yesterday and tries to clear a critical hurdle, provided by the EMA200 and the lower band of the daily Ichimoku Cloud. Successful effort will allow it to push for new 2023 highs (31,860), but fresh catalyst will be needed for that, as the upside looks unfriendly.

Despite the initial boost, BTC/USD is subdued today, contained by the aforementioned critical region. It runs its second straight losing month on regulatory uncertainty and the Fed's higher-for-longer narrative that has helped the greenback over the past several weeks. The cryptocurrency remains in a perilous state below the EMA200 and exposed to 24,732, although a test of the March lows (19,549) has a higher degree of difficulty.

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Markets now await key economic releases form the US that will affect the next steps of the US Fed and can determine the next leg of BTC/USD.

Nikos Tzabouras

Senior Market Specialist

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

References

1

Retrieved 30 Aug 2023 https://storage.courtlistener.com/recap/gov.uscourts.nysd.594150/gov.uscourts.nysd.594150.51.0_1.pdf

2

Retrieved 21 Sep 2023 https://storage.courtlistener.com/recap/gov.uscourts.cadc.38827/gov.uscourts.cadc.38827.1208547574.0_2.pdf

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