SEC Crackdown on Kraken & Paxos Amid Alameda Gap: What It Means for Crypto Investors
As the crypto market is attempting to navigate the “Alameda gap” – a lack of liquidity despite a surge in Bitcoin and Ether prices – the US Securities and Exchange Commission (SEC) has taken action against two major cryptocurrency services. Last week, the SEC fined the Kraken exchange $30 million and ordered it to stop its crypto staking services, and the New York State Department of Financial Services ordered stablecoin issuer Paxos to stop minting the BUSD stablecoin.
In response to the SEC’s move against Kraken, Cardano founder Charles Hoskinson said on Twitter that automated staking protocols offered on the Cardano blockchain will not be affected by the crackdown. This is likely to give solace to investors and traders, who are facing the prospect of Bitcoin testing $20,000 or below in the short term.
Binance Research has found that a notable minority of Ether holders who staked their ETH in Ethereum's Beacon Chain over the past three years are making money, while the rest are underwater. This suggests that Kraken's penalty shouldn't be seen as an indictment of staking as a whole.
The global cryptocurrency market capitalization dipped 1.1% to US$1.09 trillion, and the total trading volume grew 27.87% to US$81.1 billion. To begin the work week, the CoinDesk Bitcoin Price Index (XBX) dropped to $21,750 and ether declined by 1.8% to $1,514 in the Asian region.
In the wake of these developments, investors will be closely monitoring upcoming economic data releases such as Japan’s Gross Domestic Product (QoQ) at 10:50 p.m. HKT/SGT (14:50 UTC) and the United Kingdom’s Claimant Count Change (Jan) and ILO Unemployment Rate (Dec) at 6:00 a.m. HKT/SGT (22:00 UTC).
0. “Markets: Bitcoin slips back below US$24,000; equities slide” Forkast News, 17 Feb. 2023, https://forkast.news/headlines/bitcoin-below-us24000-inflation-equities/
1. “First Mover Asia: Bitcoin might test $20k as it looks for support” FXStreet, 13 Feb. 2023, https://www.fxstreet.com/cryptocurrencies/news/first-mover-asia-bitcoin-might-test-20k-as-it-looks-for-support-202302130119
2. “Crypto Price Today: Bitcoin below $24,000; Shiba Inu, Avalanche, Solana drop 5% each” Business Today, 17 Feb. 2023, https://www.businesstoday.in/crypto/story/crypto-price-today-bitcoin-below-24000-shiba-inu-avalanche-solana-drop-5-each-370563-2023-02-17
3. “First Mover Asia: Bitcoin Might Test $20K as It Looks for Support” msnNOW, 13 Feb. 2023, https://www.msn.com/en-us/money/markets/first-mover-asia-bitcoin-might-test-dollar20k-as-it-looks-for-support/ar-AA17pk0a
Leave a Comment
You must be logged in to post a comment.