According to VanEck, CEO, SEC Holds a Bitcoin ETF Hostage as it Expects Jurisdiction over Crypto Markets

Jenson Nunez
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According to VanEck, CEO, SEC Holds a Bitcoin ETF Hostage as it Expects Jurisdiction over Crypto Markets

For the VanEck manager, the SEC intends to have greater control over the crypto environment before receiving the first Bitcoin-based ETF. This interest arrived because the current regulatory scenario does not give the entity the required strength to address this sector.

The CEO of VanEck, Jan Van Eck, guaranteed that the US Securities and Exchange Commission might have a rejective stance about receiving an ETF based entirely on Bitcoin.

The stance of the CEO appeared during an interview made in the Anthony Pompliano podcast. The manager highlighted that the SEC expects more transparent rules in the regulatory field to approve the ETF.

VanEck got listed as one of the firms that have applied strong pressure to approve a Bitcoin-based ETF since it submitted applications over the last few years. Still, all of them got rejected by the regulatory entity.

According to the firm, the SEC has its current limits. That is why it has not found a way to approve this item, precisely due to the talks around the regulatory resolution are contradictory, unhealthy, and have not yet reached concrete results.

Van Eck supports the idea that everyone, including the SEC, should wait for more specific regulatory policies regarding the future. Still, there is a particular situation with the Securities and Exchange Commission.

The CEO believes that the SEC might be setting a hold on a Bitcoin ETF, waiting to acquire more field over markets linked to the asset, which it does not have right now. He thinks the regulatory dialogue is pretty unhealthy at this point, as there is a constant push and pull, filled with a bunch of pros and cons.

Regarding the legislators, Van Eck would expect that the risk regarding the proposal of a regulatory perspective made by legislators could harshen the situation since it could include legal obstacles that would make it difficult for the markets to operate with these products.

Regulations in the US

The VanEck CEO’s points of view arrived right after President Joe Biden launched an executive order primarily focused on digital assets, which sets the tone for the government’s approach and stance on these currencies.

The order highlights many aspects but focuses on consumer protection, financial stability, the prevention of shady and illegal actions, the competitiveness of the United States of America in markets worldwide, financial inclusion, and responsible improvements in the economic sector.

On the other hand, the Republican US senator for the state of Wyoming, Cynthia Lummins, expressed through social media that a policy of her own is almost ready to see the light. The approval of this bill would grant the total integration of digital assets in the system.

Meanwhile, the possibility of a Bitcoin-based ETF still struggles with various obstacles in the US, as the SEC states that there would be vital risks for users related to the volatility of the digital currency and the possibility of manipulation of its market.

By: Jenson Nuñez

Inflation in the US Registered a Record Level of 7.9% Per Year, but Bitcoin did not Get Harmed

Jenson Nunez
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Inflation in the US Registered a Record Level of 7.9% Per Year, but Bitcoin did not Get Harmed

The cryptocurrency market got undeterred after the revelation of the latest US inflation report.

The US Department of Labor revealed a new report highlighting that inflation continued its decay path in February amid geopolitical confrontations between Russia and Ukraine.

According to the government agency’s Bureau of Labor Statistics, the consumer price index, the most widely used indicator to detect inflation rates, increased 7.9% in the last year. Inflation accelerated to its fastest pace since January 1982. Monthly, the CPI rose 0.8% in February, faster than the 0.6% rise reported in January.

The Bureau explained that the gasoline, food, and housing indices increased. Energy alone increased by 25.6% over the past year, with gas and natural gas reaching 38% and 23.8%, respectively; the CPI also detects a wide range of essential goods and services.

The rise to a new four-decade high signifies that the disparity between supply and demand for consumer staples endures. The inflation rate began to reach high peaks since the COVID-19 pandemic and the money injection policies applied by the US Federal Reserve. Now, a war in Europe between two of the most prominent exporters of oil, gas, grain, and fertilizers worldwide would make things worse for the US economic structure.

The Unraveling Cryptocurrency Market

Interestingly, the cryptocurrency market got unperturbed by the news. Bitcoin and the most relevant digital currencies remained serene, even after the almost simultaneous publication of the inflation rates affecting the European Central Bank (ECB), which shared a projection of annual inflation of 5.1% for the European Union this Thursday.

The ECB also shared its latest monetary policy forecasts and economic growth projections. The ECB explained that forecasts downward growth for the next three years, at 3.7%, 2.8%, and 1.6%. It has also decided not to raise key interest rates due to the conflict unleashed in Ukraine but intends to set up a monthly reduction over asset purchases.

The digital asset market was flat following the reports. Bitcoin (BTC) remained in bearish territory and traded at least $39,000. The second-largest cryptocurrency Ethereum (ETH), extended price losses to settle around US$2,600.

The motionless price reaction departed from previous market reactions to inflation news. Recently, Bitcoin and the major altcoins have been volatile after the IPC reports in the US. In fact, after the October report (in November), Bitcoin and Ether shot up to reach new all-time highs. While moves have been less bullish since then, cryptocurrencies have so far been reacting to inflation reports.

The digital currency market has maintained extremely volatile rates in recent weeks amid the uncertain geopolitical scenario imposed by the current conflict over Europe. In the middle of this week, Bitcoin rallied above $42,000 amid expectations that the Joe Biden administration would launch an executive order linked to digital currencies.

By: Jenson Nuñez

European Union Explained that Sanctions on Russia also Include Digital Assets

Jenson Nunez
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European Union Explained that Sanctions on Russia also Include Digital Assets

The EU described cryptocurrencies as “transferable securities” and extended the scope of economic punishments against Russia and Belarus.

The European Union explained that the series of restrictions applied on Russia included digital assets in a statement made on Wednesday. The European Commission highlighted that it is extending the scope of financial punishments against Russia and Belarus due to the armed conflict of Ukraine. The order of the primary legislative entity of the European bloc spoke about digital assets, describing them as transferable securities.

The EU also explained that, by acceding the field of transferable securities, the asset class enters within the scope of the financial punishments applied on Russia and Belarus in response to their active role in the armed confrontation.

Sanctions Also Reached Digital Currencies

The European bloc also revealed the extension of the current restrictions in Belarus to mirror those already applied in Russia. These new packages include restrictions on providing SWIFT interbank res services to three Belarusian financial entities and their subsidiaries, a prohibition on dealings and transactions with the Central Bank of Belarus, and a prohibition on listing shares Belarusian state entities on EU markets.

The statement also highlighted the common understanding that loans and credits to Russia could happen regardless of the circumstances, including digital currencies. The European Commission stressed that clarifying the classification to adhere digital assets was a step to save the proper application of the current banning measures.

EU lawmakers and officials explain that cryptocurrencies could serve as an alternative channel to transport funds in and out of Russia, thus circumventing the financial punishments. Facing this possibility, members debated the extension of sanctions to the crypto environment.

The used classification of “transferable securities” does not appear in the draft EU regulation on digital currencies. These regulations, called MiCA, might come up for a critical vote next week after being suspended a few days ago.

Russia Still Not Using Crypto to Avoid Financial Punishments

Many prominent entities in the crypto world pledged to abide by restrictions from Europe and allies of the West. However, they have resisted complying with massive prohibitions on Russian users. Prominent exchange giants such as Binance and Coinbase have sided with financial freedom as an intrinsic value of digital assets.

Meanwhile, other enthusiasts and specialists from the crypto environment highlighted that Russia’s expertise in using digital assets like Bitcoin to avoid financial restrictions might be a subject of discussion.

Salman Banei, leader of public policy at blockchain analytics firm Chainalysis, let CoinDesk TV know that this situation was “unlikely” to occur. Blockchain Association US policy chief Jake Chervinsky shared a similar opinion regarding the possible event.

On Wednesday, the Financial Crimes Enforcement Network, an office of the US Department of the Treasury, released an advisory on Russia’s intentions to avoid the restrictions imposed on the country; it includes several asset-related red flags.

By: Jenson Nuñez

Bitcoin Price is Ready to Deal with the Economic Measures Taken by Biden’s Administration

Jenson Nunez
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Bitcoin Price is Ready to Deal with the Economic Measures Taken by Biden’s Administration

The US Department of the Treasury revealed a series of measures regarding cryptocurrencies. The administration deleted the statement from the internet shortly after releasing it, and the price of BTC skyrocketed by almost 10%.

The bitcoin price faced a sudden rebound on March 9, after a press release that the US Department of the Treasury published by mistake on March 8. The statement was about to meet its release during the day with the signature of President Joe Biden, as revealed by the White House, so sometime after releasing the announcement, it got deleted from its site.

However, various outlets managed to shelve it before it got deleted, so its content quickly became public and seems to count on an encouraging tone for digital assets. This situation boosted a bitcoin’s price spike from $38,500 to over $42,000, meaning a profit margin of over $3,500, as CoinGecko data currently shows.

The press release is an announcement made by Treasury Secretary Janet L. Yellen. The official highlighted that President Joe Biden’s executive order needs a more comprehensive digital asset policy to back up responsible innovation.

The statement also indicates that these digital assets or cryptocurrencies policies could benefit consumers and companies. And it also suggests that they will deal with the risks that illicit finances pose; their primary goal is to protect users and investors and prevent attacks on the financial and economic structure.

This positive perspective for the industry and the use of digital assets caused bitcoin to reach a high peak in its price. An event that various analysts, such as Bitcoin Archive, Jimbo, and Negentropic, had already mentioned before.

These experts clarified that bitcoin could reach a high peak in price because the minimum price that traders paid had been increasing for more than five weeks.

Contrary to bitcoin, which was up nearly 10% today, gold fell almost 2%, according to Investing data. This decline represents a concern for investors currently flocking to the metal to protect the value of their funds because of the economic crisis that takes shape because of the conflict led by Russia over the Ukrainian Territory.

It remains to see where the price of Bitcoin gains the strength it needs, whether it acts as digital gold or a speculation currency. Depending on that, users expect to observe more fluctuations soon.

The high indebtedness of Western nations, whose administrations have spent well beyond their means recently, especially in 2020 and 2021, leads to a situation that gathers the worst of the 2012 debt calamities with the real estate crisis and financial year 2008.

In the face of these events, the world would be facing the next great global economic crisis because the financial struggles of the United States of America are beating the world economy due to its high economic rate.

The Argentine economist Natalia Motyl also believes there will be a recession in 2023. Since November 2021, she has been warning his followers to fasten their seat belts because there is still more unemployment, inflation, currency devaluation, fiscal deficit, and other calamities to come.

By: Jenson Nuñez

Biden developed the Long-Awaited Executive Order to Regulate Bitcoin

Jenson Nunez
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Biden developed the Long-Awaited Executive Order to Regulate Bitcoin

The order will charge federal entities with a single approach to digital currencies. According to a new report, Bitcoin would become a supportive currency for the country’s national security goals.

US President Joe Biden applied an executive order highlighting the government’s intentions regarding the regulation of Bitcoin. The decree ordered the country’s federal entities to study the risks and benefits that digital assets may bring for the national security of the United States of America and how they change the nation’s economic structure.

The executive bill, the first to focus on the increasing digital asset environment, directs federal entities to set up improved and coordinated decisions to boost their work in the digital currency sector. However, it does not speak about the stances the administration wants agencies to take regarding this situation.

A statement issued by US Treasury Secretary Janet L. Yellen on Biden’s executive order appeared ahead of time and got withdrawn and deleted from their site soon after it got released.

However, the statement revealed that the president orders government agencies to use an approach toward the regulation of bitcoin. The orders aim at ​​having a better perspective when digging into the risks and opportunities that digital assets represent for the country and how it guarantees coordinated government policies.

The executive order, which has been under discussion since October of last year, will determine six priorities for the administration. These priorities aim at protecting The United States of America, protecting global financial equilibrium, preventing illegal activities, and encouraging responsive improvements, inclusion finance, and American leadership.

The protection of American customers, investors, and businesses appears in the statement issued by Biden. The research and development of a central bank digital currency or CBDC also seemed urgent for the president.

According to Yellen, the Treasury Department will join efforts with the State and Commerce Departments, among others, to present a report that would focus on the crypto environment.

Biden’s order sets a 180-day deadline for agencies linked to the government to submit their reports on the role digital assets will play, according to sources approached by Reuters.

The regulators might show new proposals to bring cryptocurrencies under their power. The Financial Crimes Enforcement Network also showed recent concerns about possible attempts by Russian entities to avoid the punishments applied by the United States of America due to the Russian Attacks in Ukraine.

Bitcoin is Capable of Backing Up US National Security Goals

Since the confrontation between Russia and Ukraine started, Bitcoin remained under the US magnifying glass. A new report revealed by the Bitcoin Policy Institute (BPI) could show how the current government looks at Bitcoin.

The institute discussed that Bitcoin could encourage the United States of America to navigate significant changes that might affect the global monetary order. These changes may follow Russia’s military offensive over Ukrainian territory.

The Bitcoin Policy Institute commented that US officials should study the durability that the current system structured on the US dollar could have and find better methods to respond to possible challenges that might surge due to the use of the currency.

He also explained that Bitcoin represents a strategic national security alternative for the United States of America to re-boost its economic strength, counter strategic enemies, and reinforce American values.

By: Jenson Nuñez

As the End of the Lawsuit against Ripple Approaches, the XRP Price Tries to Hold Up

Alexander Salazar
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As the End of the Lawsuit against Ripple Approaches, the XRP Price Tries to Hold Up

The price recently invalidated a break of support at USD 0.66, but it could drop to USD 0.41 in the short term. The scenario is bearish for XRP, as the price crosses the 8-day EMA and 18-day SMA to the downside.

The still-ongoing lawsuit against Ripple Labs has placed some bearish pressure on the price of XRP. However, there are rumors in the community that the end of the legal process could be approaching.

One of the lawyers covering the trial against Ripple said that people hope the case could conclude this year. They expect that to happen between August 26th and November 18th, but it could be sooner.

The price of XRP seems to know that the end of the lawsuit is still a few months away. Proof of that is a behavior of low determination tilted towards sellers.

XRP is trading at around USD 0.73 and has accumulated a 4.1% loss over the last week. Its daily trading volume is above USD 3.92 billion, and its market capitalization is about USD 35.36 billion. It occupies 7th place in the cryptocurrency ranking, according to CoinGecko.

It is relevant to recall that the SEC prosecuted Ripple Labs for selling unregistered securities for USD 1,300 million. That situation caused the prices of XRP to drop due to the pessimistic sentiment among its users.

Monthly Technical Analysis about the Price of XRP

The monthly XRP/USDT chart shows that the price has moved sideways but slightly downwards over the last few months.

The price crosses the 8-month EMA and 18-month SMA, which work as dynamic supports. Despite an attempt to break through those indicators, buying pressure has prevented losses from extending too far.

The price recently invalidated the break of support at USD 0.66 in an attempt to resist the turbulence. However, the continued increasingly low lows indicate that it can go lower in the short term. The closest support level shown by the monthly chart is at USD 0.41.

Given that the dominant long-term force remains bullish, the selling space could be about to run out. It seems a matter of time before the bulls take control of the XRP market.

The Next Crucial Levels for XRP in the Short Term

The daily XRP chart shows a bearish scenario for the crypto asset. The price crosses the 8-day EMA and 18-day SMA to the downside. Besides, those indicators work as dynamic resistances, following the short-term downward trend.

Right now, the probabilities of the cryptocurrency tilt towards sellers. If the price lost the support at USD 0.69, the way would be open for selling up to USD 0.59.

The recent rejection of low prices indicates that a significant rally could take place next. However, there will be no confirmation unless the price breaks through the resistance at USD 0.78.

Many people hope that the trial against the RippleLabs association will end soon for the price to resume the bullish trend. In that way, the rise in the price of XRP would bring profits to those investing in it.

By Alexander Salazar

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