Gary Gensler’s recent interview with the New York Mag (NYMAG) has once again disturbed the crypto industry.

The SEC Chairman reiterated that he considers all crypto assets and all transitions to be subject to US securities laws, in addition to spot Bitcoin trading.

Although crypto assets have yet to be officially classified, Gensler said that “everything that isn’t Bitcoin” is a security.

In his opinion, the people behind all the crypto projects and networks are sneakily trying to lure investors into buying the tokens.

@WuBlockchain, a Chinese reporter of important crypto news mainly in Asia, tweeted the following:

“There are people behind these cryptocurrencies using a variety of complex and legally opaque mechanisms, but at the most basic level, they are trying to promote their tokens and attract investors.”

He added another tweet saying that:

“Gary Gensler said in an interview with NYMAG: pretty much every sort of crypto transaction already falls under the SEC’s jurisdiction except spot transactions in Bitcoin itself and the actual purchase or sale of goods or services with cryptos, ‘everything other than Bitcoin’.”

Financial Lawyers Disagree

Gensler argued that, in essence, “these tokens are securities because there is a pool in the middle, and the public anticipates gains based on that pool.”

Blockchain Association attorney and policy director Jake Chervinsky argued that Gensler’s words or opinion are not the law. On February 26, he argued the following:

“Chair Gensler may have prejudged that every digital asset aside from Bitcoin is a security, but his opinion is not the law. The SEC lacks authority to regulate any of them until and unless it proves its case in court. For each asset, every single one, individually, one at a time.”

The idea was echoed by SEC Commissioner Hester Pierce, who urged Congress to speed up the implementation of the legislation and the official classification of crypto assets. Until then, regulators like the SEC will take matters into their own hands with these enforcement actions, as they have been enthusiastically doing this year.

“Using enforcement actions to tell people what the law is in an emerging industry is not an efficient or fair way to regulate,” Hester said earlier this month, in response to the SEC’s crackdown on Kraken.

Until there is a robust regulatory framework for digital assets in the US, the SEC will continue its war against cryptocurrencies, whether it has jurisdiction or not.

Crypto Market Insights

Crypto markets are rising again this Monday morning in Asia. Total market capitalization rose 2.4% to $1.13 trillion; however, it has remained within a relatively tight range for most of the month.

Bitcoin had gained 2.2% to trade at $23,600, while Ethereum was up 3.3% to hit $1,644, according to CoinGecko.

By Audy Castaneda

It was a bearish Saturday, with BTC slipping 0.09% to end the day at $23,178. G20 talk and further reaction to US inflation and aggressive Fed comments left BTC in numbers reds. The Fear & Greed Index responded to the threat of a more hawkish Fed policy outlook and anti-crypto sentiment, falling from 52/100 to 51/100.

On Saturday, Bitcoin (BTC) fell 0.09%. Following a 3.13% drop on Friday, BTC ended the day at $23,178. The bearish session sent BTC below $23,000 for the second time in ten sessions. BTC extended its losing streak to five sessions, the second of the year.

A mixed start to the day saw BTC rally to an early morning high of $23,223. Failing to reach the first major resistance level (R1) at $23,942, BTC fell to a late low of $22,810. However, pulling away from the first major support level (S1) at $22,665, BTC found late support to end the day at $23,178.

G20 Anti-Crypto Sentiment and Fed Fear Weighted

The G20 updates in India affected investor appetite on Saturday. While calls for a comprehensive global regulatory framework are nothing new, talks of a cryptocurrency ban were bearish. The IMF maintained its stance against cryptocurrencies, with IMF Managing Director Kristalina Georgieva suggesting that banning cryptocurrencies should be an option.

The G20 comments came amid heightened regulatory scrutiny that weighed on investor sentiment in February.

Fed Fear added to the bearish mood on Saturday. Investors responded further to the latest US inflation figures and hawkish Fed talk that sent the NASDAQ Composite Index and the cryptocurrency market into the red on Friday.

More G20 updates are likely to attract interest. While the IMF floated the idea of ​​a crypto ban, US Treasury Secretary Yellen poured water on a crypto ban but agreed on the need for a comprehensive crypto regulatory framework.

US regulatory activity and the talk of US legislators will need continued monitoring. Investors should also track crypto news leads for Binance and FTX updates and SEC vs. Ripple news that could move the dial.

Bitcoin (BTC) Price Action – Technical Indicators

BTC needs to avoid the $23,070 pivot to target the first major resistance level (R1) at $23,331. A move through Saturday’s high of $23,223 would signal a breakout session. Crypto news wires need to be crypto-friendly to support a prolonged rally.

In the event of a prolonged rally, BTC would likely test the second major resistance level (R2) at $23,483 and resistance at $23,500. The third major resistance level (R3) sits at $23,896.

Looking at the EMAs and the 4-hour candlestick chart, it was a bearish sign. BTC sat below the 100-day EMA ($23,546). The 50-day EMA closed above the 100-day EMA, with the 100-day EMA lowering back to the 200-day EMA, providing bearish signals.

A move through R1 ($23,331) would give bulls a run on R2 ($23,483) and the 100-day ($23,546) and 50-day (23,736) EMAs. However, a drop-through S1 ($22,918) and the 200-day EMA ($22,853) would give the bears a run at S2 ($22,657). A move through the 50-day EMA ($23,736) would send a bullish signal.

By Audy Castaneda