Continuous Crackdown From The SEC Is Putting Pressure On The Top Coins

The value of the top leading cryptocurrencies didn’t see much of a change for the third week of continuous as there has been a growing check and balance by the United States Securities and Exchange Commission (SEC)

Leading market players, Bitcoin (BTC) and Ethereum (ETH) continued to rally in a late line as the regulators in the US continue tightening the regulations around major cryptocurrencies.

No Movement in Top Cryptocurrencies Value

According to Coindesk, there hasn’t been a major movement in the prices of the top coins, mainly three coins in the last week or so. They have remained flat as the regulatory pressure continues to grow.

However, it is worth noticing that there weren’t any substantial losses recorded in their value. On the flip side, there were some notable rallies in a few coins. For instance, the XRP saw a growth of around 9.4% and was valued at $0.46 the last weekend.

Similarly, its forerunner, Ripple, was able to get a victory in the courtroom against the SEC. The regulatory authority filed a lawsuit against the company for launching XRP as an unregistered security in the market.

Ripple was in the headlines again when it announced that it would launch Central Bank Digital Currency (CBDC) platform on Thursday. Additionally, there were some other moves in the market as well, such as Litecoin (LTC), which saw an increase in its value by around 13.2%

The popularity of the Litecoin network saw recent growth due to the launch of its new assets, Ordinals Inscriptions, which are based on the NFT-style. These assets are unsophisticated smart contracts, the same as the top coins in the market such as Bitcoin and Litecoin.

Furthermore, the token Lido DAO (LDO) also saw an increase of 13.7% in the last week, keeping up its momentum from the week earlier. However, there isn’t any movement in the prices of the top coins in the market.

SEC Willing to Assist: Gary Gensler

SEC chairman Gary Gensler rejected the claims made against the regulatory authorities’ guidelines to the crypto companies that weren’t clear. Addressing the keynote session, he said that the rules are already handed over to the companies.

He further added that the agency was willing to help them with compliance. The SEC is considered to have disingenuous since the regulatory authority is continuously hitting the crypto industry with lawsuits.

Even the commissioners at the SEC, such as Hester Pierce, have parted a couple of times with the agency’s stance due to a lack of clarity. In the most recent case, Pierce had decided to go against her agency’s decision of shutting down Kraken’s staking platform.

She also dissented from the agency’s proposal to change the meaning of “exchange” so it can bring crypto companies into its jurisdiction.

Growing Regulations against Crypto Companies Globally

Crypto companies are facing extensive scrutiny over the last couple of months all over the world. Regulatory authorities in different countries have even crackdown on some of the leading crypto exchanges.

Even in the last G7 meeting, the country members decided to enforce the “travel rule” set by the FATF (Financial Action Task Force). It further emphasized the need to regulate their hyper-volatile market to protect the consumers’ data.

Furthermore, Finance Ministers of the EU adopted the Markets in Crypto Assets (MiCA) bill without any issues. It marks the final stage in the procedure to bring this legislation into effect.

With this legislation, it also means that the EU now has an extensive standard of guidelines that the 27 member states of the bloc with follow for the crypto regulations.