LBRY Rejoins the Crypto Market Battle Against Regulation by Enforcement
Key Insights:
- LBRY’s appeal to the First Circuit brings fresh challenges for the SEC amidst digital asset debates.
- Coinbase CEO Brian Armstrong intensifies calls for an unregulated AI, citing rapid innovation needs.
- The ongoing SEC vs. Coinbase saga could herald significant changes in the US crypto regulatory landscape.
LBRY Filing Deadline Set in Appeal Case
LBRY Appeal: On Friday, defense attorney James Filan shared the latest twist in the US digital asset space, saying,
“In the LBRY appeal, the First Circuit Court of Appeals in Boston has directed LBRY to file its brief by November 1, 2023. LBRY is appealing the court ruling that LBRY offered and sold unregistered securities, violating the Securities Act of 1933.”
The LBRY appeal will be one more headache for the SEC to contend with. Pending rulings in the ongoing SEC cases against Ripple and Coinbase (COIN) could pour water on the SEC and the regulation-by-enforcement mantra.
Coinbase CEO Brian Armstrong and AI Regulation
AI is becoming a hotly debated topic. US regulatory oversight of the digital asset space has made crypto advocates more vocal about regulation and innovation. Coinbase CEO Brian Armstrong continues to call on Capitol Hill to deliver a crypto regulatory framework that supports innovation and growth. The alternative is the ongoing SEC’s regulation by enforcement approach that stifles innovation and growth across the US digital asset space.
In contrast, Armstrong is asking regulators to leave AI to evolve freely. On Saturday, the Coinbase CEO had this to say,
“Count me as someone who believes AI should not be regulated. We need to make progress on it as fast as possible for many reasons (including national security). And the track record on regulation is that it has unintended consequences and kills competition/innovation, despite best intentions.”
Armstrong went on to say,
“We’ve enjoyed a golden age of innovation on software and the internet, largely due to it not being regulated. AI should do the same. The best protection is to decentralize it and open source it to let the cat out of the bag.”
Coinbase is embroiled in a battle against the SEC and a motion to dismiss could materially change the US crypto landscape.
Technical Analysis
Bitcoin Analysis
BTC remained below the 50-day and 200-day EMAs, reaffirming bearish price signals. The 50-day EMA crossed through the 200-day EMA, sending a sell-off warning. A BTC fall to sub-$26,500 would support a move to the trend line. A break below the trend line would bring the $25,506 support level into view.
However, a BTC break through the $26,755 resistance level would support a BTC move toward the EMAs. However, BTC would need a favorable crypto event to give the bulls a run at $27,000. The ongoing SEC cases against Ripple and Coinbase and progress toward BTC-spot ETFs remain focal points.
The 14-Daily RSI reading of 49.73 supports a BTC fall through the trend line before entering oversold territory.
Ethereum Analysis
ETH sat below the 50-day and 200-day EMAs, reaffirming bearish price signals. A breakout from the $1,626 resistance level would support an ETH move to the 50-day EMA. Favorable commentary relating to the SEC cases versus Ripple and Coinbase would drive buyer appetite.
However, an ETH return to $1,550 would bring the $1,502 support level into play.
The 14-Daily RSI reading of 40.53 supports an ETH fall to the $1,502 support level before entering oversold territory.
