Business NEWS

    News that matters

    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.[0]

    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.[0] 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.[1]

    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.[2] 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.[0] 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.[3]

    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.[1] HKT/SGT (22:00 UTC).

    0. “Markets: Bitcoin slips back below US$24,000; equities slide” Forkast News, 17 Feb. 2023,

    1. “First Mover Asia: Bitcoin might test $20k as it looks for support” FXStreet, 13 Feb. 2023,

    2. “Crypto Price Today: Bitcoin below $24,000; Shiba Inu, Avalanche, Solana drop 5% each” Business Today, 17 Feb. 2023,

    3. “First Mover Asia: Bitcoin Might Test $20K as It Looks for Support” msnNOW, 13 Feb. 2023,

    Leave a Comment

    This div height required for enabling the sticky sidebar