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Key Insights:
- Ripple and Grayscale Court rulings put SEC’s enforcement actions under the microscope.
- Armstrong on CNBC: US regulatory environment lags, but hopeful signs emerge from Congress.
- 56 million Americans signal a cry for crypto clarity.
US Regulatory Void: SEC Activity Draws Lawmaker Scrutiny
House Majority Whip Tom Emmer shared the latest on crypto regulations, saying,
“Gary Gensler has abused his authority to grow the Administrative State to the detriment of the American people. Congress must use all our tools, including the appropriations process, to restrict Gary Gensler from further weaponizing taxpayer dollars.”
Emmer went on to say,
“That is why I’m planning to sponsor an appropriations amendment that restricts the SEC’s use of funds on digital asset enforcement until there are clear rules and regulations in place.”
Emmer’s proposed appropriations amendment comes after the Ripple and Grayscale Court rulings. The SEC risks losing a Ripple appeal motion and a Coinbase Motion to Dismiss.
On Tuesday, the SEC Chair Gary Gensler will give testimony at a House Committee on Banking and Urban Affairs hearing on the oversight of the US Securities and Exchange Commission.
Coinbase CEO Brian Armstrong Spoke About Crypto on CNBC
Coinbase (COIN) CEO Brian Armstrong talked crypto to CNBC. Armstrong discussed the US regulatory environment, overseas expansion plans, the increasing adoption of crypto across the US, and the benefits of a crypto-spot ETF market.
Armstrong expects the US to catch up with the rest of the G20 on regulations, noting important bills going through the House with bipartisan support. The Coinbase CEO pointed out that 56 million Americans have used crypto, demonstrating the urgent need for regulations.
He also highlighted the pitfalls of a regulatory void, including firms moving overseas, exchanges blowing up, and a weakening American dominance as a financial hub and technology leader.
However, Armstrong feels comforted that the Courts uphold the rule of law. About the spot ETF market, Armstrong highlighted that applicants have named Coinbase as custodian for many of the ETFs. Importantly, a crypto-spot ETF market would bring new capital into the crypto ecosystem, and it’s good for Coinbase.
Technical Analysis
Bitcoin Analysis
BTC avoided the trend line for the first time in six sessions on Saturday. However, uncertainty toward the BTC-Spot ETF market continued to leave BTC within a tight range. If BTC fails to break out from $26,500, the trend line and $25,506 support level will remain in play.
A break below the trend line and support level would give the bears a look at sub-$25,000. The downward bias aligns with the 50-day and 200-day EMA, which sends bearish price signals.
However, sentiment could materially improve should the Courts grant the Coinbase motion to dismiss and deny the SEC motion for interlocutory appeal.
The 14-Daily RSI reading of 38.54 shows BTC has room to fall to test the $25,506 support level before entering oversold territory.
Ethereum Analysis
ETH remains above the $1,626 support level, with resistance at $1,650 continuing to cap the upside. A breakout from $1,650 would bring the 50-day EMA and the $1,746 resistance level into play. However, ETH would need a marked improvement in investor sentiment to support a move through $1,650 and the Wednesday high of $1,664.
A fall through the $1,626 support level would give the bears a run at sub-$1,600. Investors face several uncertainties that will test buyer appetite. Key considerations include the outcomes of the ongoing SEC cases against Ripple and Coinbase, as well as the SEC’s decisions on the crypto-spot ETFs.
Looking at the 14-Daily RSI, 37.75 signals an ETH return to sub-$1,600 before entering oversold territory.
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