A new week ends and with it it is time to analyze everything that has happened in a new CryptoNews Weekly Summary.
If there is one thing we can be sure of, it is that the SEC is not going to lower the intensity of its attacks on the cryptocurrency space. Undoubtedly, its new goal seems to be to wage an all-out open war against any company or organization that has anything to do with digital currencies. However, it seems that the ecosystem is standing strong in the face of attacks from regulators.
This week, the Securities and Exchange Commission announced a lawsuit against Paxos, the issuer of Binance’s stablecoin, BUSD. This is a fact that shook the market as the magnitude of the impact it could have on the world’s largest Exchange and its stablecoin was unknown. So the ghosts of what happened almost a year ago with UST, the crypto of the now defunct LUNA, began to haunt the market.
Quickly, CZ, CEO of Binance, used his Twitter account to clarify the situation. Assuring that while the SEC had banned the issuance of new BUSD tokens, his Exchange would continue to support the stablecoin and allow trading and staking with it. Despite this, there was a massive outflow of funds from BUSD investors to other stablecoins.
On another battle front, the SEC had announced last week the banning of the Kraken platform from continuing its staking program. This was another severe blow to the market, which could bring serious consequences, they say from LIDO. Moreover, the SEC is considering tightening the rules for those companies that hold digital assets.
All these measures, had a clear objective on the part of the exchange commission: to bring fear to the entire cryptocurrency space. From small individual savers to large banks, the SEC sought to send a clear message: “If you have cryptocurrencies, we will come after you.”
That sent the market reeling, which started the week in the red. But, in the face of the regulatory agency’s sure surprise, which was looking for the market to plummet, the bad moment lasted just a few hours and the main cryptocurrencies resumed the upward path they have maintained all this 2023.
The most important cryptocurrency, Bitcoin, managed to recover quickly from a drop below 22,000. After which it climbed to yearly highs above 24,000, boosting all other altcoins and strengthening the total market capitalization. Continuing with the optimism, Mike Novogratz, a major investor, assured that BTC could reach $30,000 in the short term.
Meanwhile, Cardano and Ethereum also had very good weeks, not only in terms of their prices, but also in terms of the amount of activity on their respective blockchains. This clearly shows that, despite the SEC’s war, the cryptocurrency community is strong and has much more support than regulators expected.