In the latest episode of The Market Report, Cointelegraph’s resident expert Marcel Pechman delves into the regulatory environment that has been limiting Bitcoin’s upside and the possibility of a dump at $28,000. The show, which airs every Tuesday on the Cointelegraph Markets & Research YouTube channel, covers various topics affecting the cryptocurrency market.
The first topic Pechman discusses is the recent charges brought by the SEC against crypto exchange Bittrex and its founder. The SEC Enforcement Division Director’s statement that the action should send a message to other non-compliant crypto market intermediaries is seen as a warning to Binance, Bybit, and OKX, which have notoriously taken U.S. clients through VPN and other evasive strategies. Pechman believes that the SEC’s case against Bittrex is weak and that the exchange will likely face a multimillion-dollar fine and be forced to shut down operations in the U.S.
Pechman then moves on to discuss the U.S. Congress draft stablecoin bill, which proposes a two-year ban on issuing, creating, or originating stablecoins not backed by tangible assets. Failure to register as an issuer could result in up to five years in prison. The proposal also requires issuers outside the U.S. to seek registration to do business in the country. Pechman believes that the bill sends a clear message that legislators do not want algorithmic-backed stablecoins or any operation that is not backed by U.S. dollars or U.S.-denominated, short-term bonds.
However, Pechman advises against panic-selling any stablecoin solely based on this proposal. While there could be impacts for Tether (USDT) and Dai (DAI), any changes are subject to voting and court rulings.
In the final part of The Market Report, Pechman discusses whether the U.S. court has any real power over Justin Sun, the founder of Tron. Pechman argues that this move shows desperation by regulators and how coincidental it is that multiple agencies are pressing charges on crypto businesses and payment processors over five years after their launch. Given the extreme regulatory FUD scenario, Pechman believes that Bitcoin could retest the $28,000 level.
Overall, The Market Report provides valuable insights into the regulatory landscape affecting the cryptocurrency market. The show airs every Tuesday, and viewers can subscribe to the Cointelegraph Markets & Research YouTube channel for future updates and videos.