SEC looks likely to lose and Crypto Bull re-launches

SEC looks likely to lose and Crypto Bull re-launches

Q3 looks set to be trading green as signs of a court loss for the Securities and Exchange Commission (SEC) begin to show as their court cases begin to water down against the many initiatives they brought forward in an attempt to reign in digital assets.

But the sector has struck back with their own defense's that are likely to be successful in the coming months. A key sign of the SECs looming loss comes as Black Rock and many other crypto ETF traders list coinbase listed on ETF applications which are unlikely to be rejected by the SEC.

The SEC does have some concern with Coinbase, being that the exchange is not under it's regulation and the SEC can not depend on them to ensure price manipulation or reliable pricing is adhered to.

This is leading many to believe the SECs main focus of it's court cases is to get Coinbase and the likes under their regulation to better ensure spot ETFs are secure and free of price manipulation.

Coinbase under surveillance

There are a few ideas the SEC is floating around in how it can manage the current market and how it would benefit the sector should it bring exchanges like Coinbase under it's regulation.

One of the recommendations is to place Coinbase under surveillance not so much physical but more so having an agreement between the exchange operator and regulated exchange such as Nasdaq. Although what this move would mean for the broader crypto market is unknown.

But the move will need to occur because the court was not convinced that a spot couldn't be offered by companies to traders and not enabling the option. Continues to grow over the counter trading which continues to suffer from illiquidity leading to a large portion of the bank runs and crashes we have been experiencing.

Wall Street Preferred Option for SEC

As we previously anticipated Wall Street was betting on Crypto and the current legal proceedings and rapid action from the SEC was to clean up the sector and move trading to mainstream.

This has now been evidenced with a leaked SEC report identifying it is easier for the SEC to work with already registered and regulated institutional brokers rather than trying to work with the currency exchanges such as Binance.

The SEC see's the Wall Street providers as more mainstream and less risk to the broader community and could address liquidity issues and would enable the SEC to more easily operate along side current mainstream providers.

It is yet to be seen if much of the current crypto market would support such a move as one of the key profitability and drivers of the crypto sector is ease of use and access. The quick buy and sell now with limited registration processes makes it quite appealing to a lot of younger investors which make up the majority of digital asset trading.

Either way the news as seen Coinbase surge in value with many punters betting on the exchange to not be denied it's access to the market and retain it's position in the digital asset realm.

XRP Outlook Not as Likely

Some are in the position that XRP won't win their case for the above fact that the SEC is driving Crypto to Wall Street instead of decentralisation. Even if XRP win's it's court case they do not think it will win the overall war and will succumb to a loss.

The court case has already costed Chairman, Gary Gensler his role as he is resigning from his position and XRP price hasn't moved for some time. This is potentially showcasing that the community is not entirely prepared to risk it on XRP at this stage.

Whale Alerts did identify that XRP released One Billion from Escrow and with news of that much new XRP sitting around waiting to be traded, it is enough to make any aggressive trader timid.

What the intentions of the unlock could be are unknown but there is movement and it may cause some significant damage to the companies bottom line.

It's still too early to tell what the outlook for Crypto will be but as Q3 kick's off it is all signs of a Green bull run that everyone is keen to see after a long period of sideways and down trading.

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