By Jake Coleman
The crypto market has witnessed a significant rebound, reclaiming a substantial portion of the losses incurred in 2022. BTC has surged over 80% year-to-date, while numerous altcoins have exhibited even more impressive performances. This prompted inquiries and examination within the community regarding the potential conclusion of the bear market and the industry’s readiness for an upcoming bull cycle.
Additionally, the upcoming BTC halving, anticipated within a year, is commonly perceived as a potential trigger for forthcoming price surges. In light of recent developments, the US Securities and Exchange Commission may play a part in a prospective bull market.
The Impact of the SEC
As one of the influential regulators in the world’s largest economy, the actions of the SEC often wield significant influence over a comparatively modest market such as crypto. In a notable turn of events, the Commission’s pursuit of Ripple, Coinbase, and Binance in late 2020 immediately adversely impacted the prices of various digital assets.
In a realm where the SEC’s legal actions have the potential to impact projects and enterprises, an alternative perspective emerges. Earlier this week, an intriguing development unfolded as Judge Analisa Torres, overseeing the legal proceedings involving Ripple, rendered a favorable ruling for the blockchain initiative. The verdict indicated that most XRP sales were not deemed security transactions, a matter that the SEC has long sought to establish.
The judicial ruling had an instantaneous and substantial effect not solely on the valuation of XRP but also on numerous alternative cryptocurrencies that the SEC claimed lacked proper registration as securities.
Consequently, it is reasonable to speculate that the entire market may experience a significant surge if the agency were to face setbacks in its ongoing conflicts with prominent industry players such as Coinbase and Binance.
Spot Bitcoin ETF
A potential development in the crypto space is the emergence of a Bitcoin exchange-traded fund (ETF).
The SEC’s actions hold sway over the potential for a spot Bitcoin exchange-traded fund in the United States. Numerous applications from prominent entities like Grayscale, Ark Invest, Fidelity, WisdomTree, VanEck, and others have faced rejection by regulators over the past decade.
Amidst the agency’s relentless onslaught on the industry through its recent wave of legal actions, there was widespread skepticism regarding the imminent realization of such a product.
In mid-June, a significant shift occurred as BlackRock, the renowned global asset manager and a prominent player in the financial realm, submitted a filing to introduce a spot Bitcoin ETF. This action was subsequently emulated by various other entities, amplifying its impact. BlackRock, a prominent financial institution, has achieved an impressive success rate in their ETF applications, with the SEC reviewing 575 applications and approving only 1.
The recent application for a BTC ETF had a notable impact on the digital asset’s value, propelling it beyond the $30,000 threshold after a prolonged period of stagnation between $26,000 and $27,000.
The regulatory body, the SEC, has recently dismissed several applications, citing their inadequacy. This decision immediately impacted the market, leading to a decline in prices. Nevertheless, BlackRock, alongside other ETF enthusiasts, made revisions to the filings. Additionally, the esteemed agency recently approved an application from BlackRock, initiating the formal review procedure.
While the duration may be considerable, the prospective authorization of a spot Bitcoin ETF within the United States could potentially yield a substantial and instantaneous impact on the overall market. In the grand scheme of things, BTC reached its latest all-time high (ATH) of $69,000, coinciding with the endorsement of the inaugural futures BTC ETF in the United States during the latter part of 2021.
