It seems the next 24 hours will be critical for all cryptocurrencies regarding the three most pressing events that could alter the course of the entire digital assets ecosystem. Let us delve deeper to understand these events in detail.
Along with the Consumer Price Index (CPI) data which is to be released today, other important happenings include the release of the long-awaited Hinman documents in the Ripple-SEC case, the hearing on the United State’s Securities and Exchange Commission’s (SEC) temporary restraining order (TRO) against Binance.US and the SEC’s response to clarify its position on a rulemaking petition from Coinbase.
On June 13, Paul Grewal, an attorney working as the chief legal officer at crypto exchange Coinbase, took to Twitter to provide a heads-up naming the red letter events that mark crypto’s calender today, citing, “Not every federal court day is eventful in crypto, but tomorrow is. May God bless the US Courts.”
1. Hearing on motion to seize Binance assets in DDC;
2. Release of Hinman docs in SDNY;
3. SEC response to order on @Coinbase petition in 3rd Cir.Not every federal court day is eventful in crypto, but tomorrow is. May God bless the US Courts.
— paulgrewal.eth (@iampaulgrewal) June 13, 2023
US CPI Data Will Be Released
It seems the United States stock market investors will be keeping a close watch on the inflation numbers with the release of the US CPI data. If the data comes in lower than expected, it could indicate that the economy is slowing down, which could be a negative for stocks and cryptos. CPI data can indirectly affect the value of bitcoin and other cryptocurrencies through its impact on the broader economy.
U.S. CPI data will be released today 📆
The Consumer Price Index (CPI) is the key indicator for estimating inflation
According to the U.S. Bureau of Labor Statistics forecast, the figure for June is expected to be 4.1 percent 🔮
0.8 percent lower than current inflation, which…
— Young Platform (@youngplatform) June 13, 2023
If the upcoming data shows persisting annual US inflation continuing in May, the US Fed will be expected to continue hiking interest rates further. A rate hike may potentially trigger a meltdown in the crypto market as observed with previous rate hikes. Hence, the next 24 hours will hold a significant cue card to decide whether digital assets will soar or take a dive, yet again.
Unsealing of Hinman Documents
One of the foremost event that will be taking its due couse today is the unsealing of the Hinman documents. The Hinman documents documents offer valuable insights into the internal communications of the SEC regarding a speech given by former SEC Director William Hinman in 2018.
In his speech, Hinman expressed the viewpoint that cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) could initially be considered securities. However, they have the potential to transition into more commodity-like assets as they achieve a higher level of decentralization.
The Ripple community strongly believes that the unsealing of these documents will provide crucial insights into the legal status of Ripple’s native digital asset, XRP. The outcome of this development could likely have far-reaching implications for Ripple and the broader crypto industry. Even Ripple CEO Brad Garlinghouse expressed on Twitter that the unsealing of the Hinman documents will hold significant value, justifying the two-year-long battle with the American regulator. Garlinghouse wrote,
“Wish I could go in depth now, but we’ve waited this long (18+ months), I don’t want to overstep… suffice it to say Stuart Alderotyand I believe they were well worth the wait.”
Wish I could go in depth now, but we've waited this long (18+ months), I don't want to overstep… suffice it to say @s_alderoty and I believe they were well worth the wait.
— Brad Garlinghouse (@bgarlinghouse) June 12, 2023
Hearing Regarding Binance.US Assets
In addition to this event, the crypto community will witness a federal court hearing on the SEC’s motion to freeze the assets of Binance.US. This motion follows a series of legal actions against the popular exchange. Earlier this week, the SEC had filed an emergency motion in Washington, D.C. federal court asking a judge to freeze the assets of Binance’s U.S. platform.
SEC Asks Court To Freeze Assets Of Binance U.S. Units Named In Suit https://t.co/opn3u6E2X8 pic.twitter.com/cG26M5e2cv
— Forbes (@Forbes) June 7, 2023
In response to the legal suit, Binance.US made a legal filing on June 12, asking the presiding judge to reject the SEC’s request to freeze the exchange’s assets. Binance had also stated that the order would significantly impact its business and hurt customers.
SEC’s Response to Coinbase
Meanwhile, another major event that will be occurring today is the SEC’s response to clarify its position on a rulemaking petition from Coinbase. Last week, the United States Court of Appeals for the Third Circuit ordered the SEC to respond to Coinbase’s pending petition for rulemaking within seven days, which happens to be today.
Earlier tonight the Third Circuit issued a short order in Coinbase’s mandamus action today. The court noted the SEC’s suit against us this morning and asked the SEC whether that means the SEC has decided to deny our pending petition for rulemaking. The SEC has 7 days to respond. pic.twitter.com/8QXXoHJ07Z
— paulgrewal.eth (@iampaulgrewal) June 7, 2023
In its order on Tuesday, the court had urged the American watchdog to clarify whether Coinbase’s rulemaking petition has been denied, and if not, then how much time would the SEC require to decide whether to deny or grant that petition.
While the crypto market is reeling under the heavy crackdown from the US SEC, these major events will likely be of utmost importance for the entire digital assets industry. In a statement, Shubham Hudda, Senior Manager at Indian crypto exchange CoinSwitch noted,
“The crypto community seems to have taken it in a positive light. However, we can still expect markets to show volatility during the week due to multiple expected developments, from US CPI data, SEC’s Coinbase rulemaking response, and Binance US hearing slated for today, to the FOMC meeting, US Jobless Claims and more slated for later in the week.”
