A new week ends and with it it is time to analyze everything that happened in a new Weekly Summary of Cryptonoticias.
If there is one thing we can be sure of, it is that the SEC is not going to tone down its attacks on the cryptocurrency space. Undoubtedly, their new goal seems to be to wage all-out open war against any company or organization that has anything to do with digital currencies. However, it seems that the ecosystem is resilient 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 since the magnitude of the impact it could have on the world’s largest Exchange and its stablecoin was unknown. For this reason, the ghosts of what happened almost a year ago with UST, the cryptocurrency of the now-defunct LUNA, began to haunt.
Quickly, CZ, CEO of Binance, used his Twitter account to clarify the situation. Ensuring that while the SEC had banned the issuance of new BUSD tokens, their 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 front of battle, the SEC had announced last week the ban on the Kraken platform from continuing with its staking program. This was another hard blow to the market, which could have serious consequences, according to LIDO. Furthermore, the SEC is studying tightening the rules for those companies that custodian digital assets.
All these measures had a clear objective on the part of the stock exchange commission: to spread fear to the entire cryptocurrency space. From small individual savers to large banks, the SEC sought to send a clear message: “If you have cryptocurrency, we are coming for you.”
That sent the market reeling, which started the week in the red. But, to the certain surprise of the regulatory agency, which was looking for the market to collapse, the bad moment lasted just a few hours and the main cryptocurrencies resumed the upward path that they have maintained throughout 2023.
The most important cryptocurrency, Bitcoin, managed to quickly recover from a fall below 22,000. After which it rose to yearly highs, above 24,000, boosting all the 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.
For their part, 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. Which clearly shows us that, despite the war being waged by the SEC, the cryptocurrency community is strong and has much more support than regulators expected.