SEC Dismisses Coinbase's Crypto Rules Petition; Bitcoin Predicted to Surge; SafeMoon Faces Plunge Post-Bankruptcy
Summary:
The U.S. Securities and Exchange Commission (SEC) has dismissed Coinbase's request for specific regulations for crypto assets deemed as securities, stating the current laws suffice. Blockstream CEO, Adam Back predicts a potential Bitcoin surge in 2024. SafeMoon's token value fell by 31% within five hours of filing for Chapter 7 bankruptcy; however, it experienced a swift recovery soon after.
The United States Securities and Exchange Commission (SEC) has rebutted Coinbase's request for unique regulatory guidelines pertaining to cryptocurrencies considered as securities. Amid this, Blockstream CEO Adam Back hints at a potential surge in 2024, whereas SafeMoon has seen a sharp fall in share prices post filing Chapter 7 bankruptcy.
SEC Rejects Coinbase Plea for Special Crypto Rules
The SEC addressed Coinbase's proposal from July 2022, making it explicit that existing rules sufficiently cover cryptocurrencies deemed as securities. Gary Gensler, the SEC chair, revealed this rejection on December 15, stating the existing securities laws also extend to cryptocurrency markets. Simultaneously, current SEC investigations into specified crypto rules have made Coinbase's petition unnecessary.
The SEC is currently in discussions with bodies seeking a Bitcoin exchange-traded fund. Court fillings demonstrate a meeting between SEC and BlackRock representatives on December 14, along with meet-ups with Grayscale and Franklin Templeton from the preceding week.
Blockstream CEO Adam Back Predicts Bitcoin Surge
Issues like the COVID-19 pandemic, inflation spikes, and regional unrest have contributed to Bitcoin's value fall over the previous two years. However, according to Adam Back, CEO of Blockstream, 2024 might witness a reversal.
Adam Back, the original developer of Bitcoin's proof-of-work algorithm, informed Cointelegraph that Bitcoin's current value falls short of previous halving cycles. The upcoming halving, reducing Bitcoin miners' block rewards from 6.25 BTC to 3.125 BTC, could significantly influence Bitcoin's price actions.
Back observed recent events, causing a dip in Bitcoin price, reflecting similar trends across financial markets.
Post Bankruptcy Filing, SafeMoon Faces a Sharp Plunge
The DeFi token SafeMoon experienced a 31% dip within five hours, following its Chapter 7 bankruptcy filing. SafeMoon applied for Chapter 7 bankruptcy intending to liquidate its assets.
SafeMoon's bankruptcy filing was on December 14 at the US Bankruptcy Court, District of Utah, with attorney Mark Rose initiating the petition, with Chief Judge Joel T. Marker overseeing the case.
This filing follows just a month after the SEC accused SafeMoon, along with its founder Kyle Nagy, CEO John Karony, and CTO Thomas Smith for violating security laws through what they term as "a colossal fraudulent scheme".
After the announcement, the cryptocurrency faced a significant drop from $0.000065 to $0.000045 within five hours, as per CoinGecko. However, it experienced a quick recovery to $0.000061 within 10 minutes.
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Published At
12/15/2023 10:19:36 PM
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