Emmer accused the SEC of exceeding its jurisdiction at the expense of public resources with the cryptocurrency industry. Gary Gensler wants the SEC to have exclusive jurisdiction over crypto assets to regulate them like stocks and shares.

Tom Emmer recently said the US Securities and Exchange Commission (SEC) is still targeting cryptocurrencies and has exceeded its jurisdiction.

The Republican senator has questioned the level of trust of the public in the US financial system. In addition, he commented that the SEC attributed this trust erosion to corporate and industry participants.

The official accused the agency of exceeding its jurisdiction at the expense of public resources and trust, especially with the cryptocurrency industry.

Senator Emmer recently released a video of his conversation with the directors of the financial regulator.

The SEC Has Struggled to Discourage Crypto Assets

SEC Compliance Director Gurbir Grewal confirmed that there were industry sweeps after Tom Emmer questioned him about them. In that regard, Grewal declined to provide any details by citing the policy of the SEC.

The Chief Compliance Officer also said he had made extra-judicial claims about companies not under the authority of the SEC.

Senator Emmer also stated that SEC Chairman Gary Gensler instructed the law enforcement division to send sweep letters. They would send them to a particular sector of the crypto community to trap them in an allegedly unconstitutional violation.

According to the SEC, those not responding to the supposedly voluntary inquiries will face the consequences. Emmer accused the agency of dissolving the division to create crypto asset regulations.

In addition, the senator commented that the SEC seeks to expand the size of its cryptocurrency enforcement division. He argued that they are using the enforcement to exceed their jurisdiction unconstitutionally.

He said that the SEC had become a power-hungry regulator, politicizing law enforcement and urging companies to talk to the Commission. Besides, he considers that the agency has hit them with law enforcement, discouraging cooperation in good faith.

The SEC Not to Vote on the Lummis-Gillibrand Bill

The proactive Lummis-Gillibrand bill is unlikely to receive the vote of the SEC this year. Senator Lummis said it might be difficult for lawmakers to digest the broad scope of the legislation quickly. Therefore, the Senate might not vote on it in late 2022.

Gary Gensler has criticized the bill arguing that it poses a USD 100 trillion threat to the traditional financial sector. The official wants the SEC to have exclusive jurisdiction over crypto assets to regulate them like stocks and shares.

Meanwhile, the Price of Bitcoin Reaches a High Daily Close

The price of Bitcoin (BTC) has left a long-term descending resistance line and a short-term ascending parallel channel. Therefore, a reversal of the bullish trend may very likely have started.

Bitcoin has traded below a descending resistance line since April 5^th. The move to the downside has recently led to a long-term low of USD 17,622.

Since then, the price of BTC has increased and exceeded the resistance line. A breakout of a long-term resistance line usually leads to a significant move to the upside. The 0.382 Fibonacci retracement resistance level currently stands at USD 29,400, as it measures the full height of the resistance line.

That breakout happens alongside a breakout of the RSI above 50, a signal of a bullish trend. The RSI support line indicates that the bullish structure is intact.

By Alexander Salazar

The total capitalization stands at 1,061 billion dollars.

Rises in cryptocurrencies continue this Wednesday, with Bitcoin above $23,000, a price level that has resisted the digital asset in the last month. In the rest of the tokens, the Ethereum continues to be news and settles above 1,500 dollars, while the tokens, in general, are in the green and leave rises of up to 50% for the ether and more than 70% for the MATIC (Polygon) in the last week. The total capitalization is located at 1,061 billion dollars.

Bitcoin is enjoying this period of improving sentiment, a weaker dollar, and a dearth of worrying new headlines. It is still above $23,000, although yesterday’s foray above this figure sent the price back rapidly. “While the rebound has been impressive, I am still struggling to see the sustainability of it. Technically, it still looks like a consolidation pattern after a sharp drop, which is typically bearish,” warns Craig Erlam, an analyst at Oanda. “Of course, that doesn’t mean it will be this time, but it still seems like the most likely path,” he adds.

For the rally to continue, the bulls want the price to sustain above $21,500, which is in confluence with the 20-day moving average. “Since Bitcoin’s fall from $45,000, this moving average has had 6 retests and 6 rejections, so $21,500 is a price level to hold,” Marcus Sotiriou comments. “If the price fails to retest and reject the daily trend after a 60% drop in 4 months, this would be a telltale sign of market weakness,” he says.

Signals of the Upside

There are some signs that we could see a continuation to the upside as the Coinbase Premium Gap has rallied to positive values ​​over the past week. The Coinbase Premium Gap is an indicator that measures the difference between the Bitcoin price on Coinbase and the price on Binance.

This indicator has been negative for several months during the downtrend of the market, showing that the value of Bitcoin on Coinbase has been lower than that of Binance. However, data from Crypto Quant shows that Coinbase’s premium gap has increased significantly recently. Sotiriou believes that “this could be a sign that US investors are buying Bitcoin more than the rest of the world, as Coinbase is used primarily by US investors.”

The expert explains that this could also indicate that institutional investors “are becoming more aggressive buyers, as Coinbase has a higher institutional percentage of users compared to Binance and institutional buying pressure is always a positive sign for bulls.”

The fact that this indicator has risen, while the terrible news is no longer negatively affecting the market, suggests that we could see more gains in the coming weeks.

Some Experts Opinions

Paul Levy, Senior Lecturer at the University of Brighton, opines that, “Bitcoin is likely to recover in 2023, which may actually lead to inflated expectations and further volatility.”

On the other hand, Vetle Lunde, an analyst at Arcane Research, places the bottom of bitcoin at $13,000 and the level at which it will end the year at $20,000. “A host of negative forces have crushed Bitcoin…further hardening and unwinding of crypto bad debts will create sobering times ahead, and investors should tighten their belts for more hardship,” he stated.

By Audy Castaneda