The crypto market is down today as Bitcoin and altcoins correct on news that the SEC has ordered Paxos to stop issuing Binance USD. The crypto market is down today as market volatility increases ahead of the Consumer Price Index (CPI) report that measures inflation.
This week’s CPI print, combined with increased regulatory enforcement from the United States Securities and Exchange Commission (SEC) could translate to further downside for Bitcoin (BTC) and the wider Cyrptocurrency market.
U.S. regulators continue to crack down on Stablecoin issuers and staking as a service providers. This has caused investors to become concerned, as it could lead to enforcement action against Paxos and Binance. The recent SEC crackdown on centralized staking has also created uncertainty in the market, which has led to volatility.
The cryptocurrency industry and regulators have a long history of not getting along. The most recent battle is centered over how centralized exchanges can use customer funds. The SEC started the recent string of enforcement actions by going after Kraken’s earn program on Feb. 9. In the $30 million settlement announcement, the SEC said it had charged Kraken with “failing to register the offer and sale of securities.”
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- “Bitcoin Price Drops Amid Intensifying Regulatory Scrutiny of Cryptocurrencies”
- “UK Crypto Industry in Turmoil: Firms and Regulators Point Finger over Exodus”