Regulatory Activity and Ripple Grab the Headlines
Key Insights:
- IMF and FSB collaborate, releasing a deep-dive assessment titled “Policies for Crypto-Assets.
- The crypto world eyes CFTC as it takes action against three DeFi Protocols.
- SEC files a Reply Memorandum to its Motion for Interlocutory Appeal: awaiting a pivotal ruling from Judge Torres.
The Friday Overview
SEC Files Reply Memorandum: On Friday, the SEC filed its Reply Memorandum to its Motion for Interlocutory Appeal. Presiding Judge Torres will now deliberate and rule on the SEC motion. Crypto legal expert John E. Deaton believes Judge Torres will address criticism from Judge Rakoff and ensure her ruling is resistant to appeals.
Ripple Acquires Fortress Trust: Ripple announced the acquisition of Fortress Trust. Fortress Trust is a financial institution providing licensed Web3 financial, regulatory, and technology infrastructure for blockchain innovators. According to the announcement, “Ripple’s growing portfolio of regulatory licenses expands, as Fortress Trust holds a Nevada Trust license.”
IMF and FSB Shine the Spotlight on Digital Assets: The International Monetary Fund (IMF) and the Financial Stability Board (FSB) released a joint assessment of the crypto market titled Policies for Crypto-Assets. The paper provides a policy implementation roadmap, assigning action points to organizations, including but not limited to the IMF, FSB, and the World Bank.
CFTC Targets the DeFi Space: On Thursday, the Commodity Futures Trading Commission (CFTC) targeted three DeFi Protocols for offering illegal digital asset derivative trading. According to the CFTC press release, the CFTC issued orders simultaneously filing and settling charges against Opyn, ZeroEx, and Deridex. In addition to civil monetary penalties, the order required the protocols to cease and desist from violating CFTC regulations and the Commodity Exchange Act (CEA).
Technical Analysis
Bitcoin Analysis
For the fifth consecutive session on Friday, BTC retested the trend line to gauge buyer appetite. In a choppy session, BTC also retested resistance at $26,500. However, BTC remains below the 50-day and 200-day EMAs, sending bearish price signals. The bearish sentiment left BTC short of the $26,755 resistance level. SEC activity and a lack of progress toward a BTC-Spot ETF market remain headwinds.
If BTC avoids a break below the trend line, BTC should take another run at the $26,755 resistance level. However, updates from ongoing SEC cases against Ripple and Coinbase (COIN) must be favorable to support a BTC breakout.
A bearish cross of the 50-day EMA through the 200-day EMA would signal a break below the trend line and the $25,506 support level.
The 14-Daily RSI reading of 38.91 indicates BTC can test the $25,506 support level before entering oversold territory.
Ethereum Analysis
ETH hovers above the $1,626 support level, with resistance at $1,650 capping the upside. A move through $1,650 and the Wednesday high of $1,664 would give the bulls a run at the 50-day EMA and the $1,746 resistance level. However, ETH would need the crypto news wires to support a return to $1,700.
Failure to break out from $1,650 would leave the $1,626 support level and sub-$1,600 in play.
Looking at the 14-Daily RSI, 38.68 indicates ETH can return to sub-$1,600 before entering oversold territory.
