In 2023, after increased pressure on altcoins from the SEC, the share of Bitcoin increased from 38% to 45%. Regulator recognizes only Bitcoin as a “commodity”, while the rest of the coins are inclined to be considered “securities”.
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Since to work with securitiesinstitutions need to obtain an appropriate SEC license, a pre-trial claim (Wells Notice) has been filed by Kraken, Coinbase, Paxos, and a number of other organizations. As a result of the pressure, Kraken stopped providing staking services and Paxos stopped minting BUSD for Binance. Coinbase is ready to defend the interests of clients in court, but at the same time canceled staking for Algorand, one of the six coins offered by the service.
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The actions of regulators are criticized not so much forexcessive rigidity, how much for the lack of specifics. Thus, Coinbase CEO Brian Armstrong noted that over 30 meetings were held with representatives of the SEC, but they were never given the criteria for granting a particular cryptocurrency the status of a “security”.
The lack of transparency has led to a number ofcrypto companies have already curtailed their work in the US, and even the country's largest crypto exchange Coinbase yesterday announced that it had received offshore registration to expand business outside of US jurisdiction.
Image source: coinbase.com
The departure of companies means an outflow of funds from the United States, whichin the current pre-crisis conditions is a particularly painful phenomenon. For this reason, SEC Chairman Gary Gensler was called to Congress, to the Financial Services Committee.
According to the transcript, congressmen three timesinterrupted Gensler's speech by asking a direct question: "Is Ethereum a security?" To which Gensler each time gave an evasive answer, demonstrating the vague position of the regulator.
Lack of a balanced approach tocrypto regulation and unreasonable pressure from crypto companies led Congressman Warren Davidson to submit to Congress the removal of Gensler from office for abuse of power.
Image Source: Cryptocurrency Exchange StormGain
With Gensler gone, Ethereum will have a chance atLeading the dynamics of Bitcoin at the end of 2023, as the change in leadership of the SEC will open up the opportunity for a more balanced approach in determining the status of altcoins.
Analytical group StormGain
(platform for trading, exchanging and storing cryptocurrency)