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Crypto prices pull back on fresh Binance controversy
Although crypto prices have surged on mounting risks to the traditional financial system, uncertainty continues to plague the crypto industry. Binance returned to the headlines earlier this week after it was reported the US Commodity Futures Trading Commission (CFTC) sued the company on allegations it offered unregistered crypto derivatives and encouraged its clients to evade compliance controls through the use of VPNs.
Following the spectacular collapse of FTX last year, along with increased scrutiny from US lawmakers, and the failure of several Crypto banks, authorities have the crypto industry in its crosshairs. Traders remain wary of any further regulation that could stifle the growth in crypto assets, with the price of Bitcoin and the other major tokens taking a spill on the Binance developments.
Crucially too, the CFTC classified Bitcoin and several other crypto assets as a “commodity” rather than a “security”. While seemingly semantic, the development shows a split between authorities regarding how crypto assets should be regulated, and who has the ultimate responsibility for regulating them.
Given the legal bar set by the “Howey test” to determine whether an asset can be considered a security, its unlikely crypto assets qualify.
Three cryptos to watch
Following a huge surge to begin the year, Bitcoin prices are pulling back, as the bank crisis apparently subsides. Sellers emerged around resistance at $US28,000 with previous resistance at roughly $25,000 acting as support. An upward-sloping trendline might act as further resistance, while a break of $25,000 could open a drop to $22,800.
Bitcoin daily chart
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