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⚡SEC Stalls Bitcoin ETF💩

Croxroad

28 Sep 2023 — 6 min read

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⁉️ SEC Postpones Bitcoin ETF Decision

The U.S. Securities and Exchange Commission (SEC) has delayed making a decision about a Bitcoin Exchange-Traded Fund (ETF) again. This time, it's about the ARK 21Shares Bitcoin ETF, which a lot of people were eagerly waiting for. Originally, they were supposed to make a decision by November 11, but now they've postponed it to January 10, 2024.

What's a bit puzzling about this is that a group of politicians from both sides of the aisle in Congress recently sent a letter to the SEC, basically asking them to give the green light to Bitcoin ETFs that are based on the actual price of Bitcoin. Despite this push from Congress, the SEC decided to delay the decision, leaving many people scratching their heads as to why.

A group of U.S. Representatives, including Tom Emmer, Mike Flood, Ritchie Torres, and Wiley Nickel, wrote a letter to the head of the SEC, Gary Gensler. In this letter, they basically asked the SEC to approve Bitcoin ETFs that are based on the actual price of Bitcoin.

Their argument is that these kinds of investment products provide a safe and regulated way for people to invest in Bitcoin. They believe that if the SEC doesn't approve these types of ETFs, it could push investors to put their money into riskier and less regulated options.

The decision to postpone the approval of the ARK 21Shares Bitcoin ETF might not be just a simple delay. Some people are guessing that there's a bigger plan at play here.

One theory is that this delay could be a way for big institutional players, like BlackRock, to strengthen their positions in the Bitcoin market while making things more challenging for platforms like Binance. The ultimate goal might be to have more control over the decentralized world of cryptocurrencies.

Another possibility is that this delay is connected to recent moves by banks, like Chase UK, which have stopped offering cryptocurrency services. This could be seen as a signal that regulators believe stronger oversight is needed in the digital asset space.

It's not uncommon for emerging technologies to encounter regulatory hurdles along the way. If we look back, even the early days of the internet were like the 'wild west,' with little regulation and a lot of uncertainty. But over time, regulations were put in place, and the internet became more corporate and structured.

Now, when it comes to the delay in approving the ARK 21Shares Bitcoin ETF, it's a bit of a concern. This delay might set a precedent that doesn't look good for other pending Bitcoin ETF applications, like the one from GlobalX that's supposed to be decided on October 7. It's like a cloud of uncertainty hanging over these applications, and investors are likely watching closely to see how things unfold.

🙅 Crypto Giants Descend on D.C. Amid Budget Battle

On a Wednesday, a bunch of cryptocurrency companies are heading to Capitol Hill. They're going there to try and convince lawmakers to make rules that are friendly to the cryptocurrency industry. But, it looks like their mission might get kind of lost in all the noise because there are other big things happening in Congress.

You see, there's a big fight going on about the federal budget, and the Senate is also really concerned about people using cryptocurrency for money laundering, which is basically hiding illegal money. So, these issues are taking up a lot of attention.

Still, these crypto companies aren't giving up. They've sent a bunch of top executives to talk to the lawmakers and their staff. This whole effort is organized by Coinbase, which is the largest cryptocurrency exchange in the U.S., and they're getting some help from a non-profit they created called Stand With Crypto.

Back in July, the House Financial Services Committee made some important decisions. They approved two significant bills that were meant to make things clearer for the cryptocurrency industry. These bills aimed to explain which regular financial rules should apply to crypto.

Now, the people who work as lobbyists for cryptocurrency companies are hoping they can persuade lawmakers to make these bills into actual laws. They want Congress to pass them.

However, it's not going to be easy because right now, lawmakers are dealing with some big issues. They're trying to prevent a government shutdown, and there are also other important bills they need to pass, like the Farm Bill and the National Defense Authorization Act (NDAA). So, with all these other things taking up their attention, it might be a challenge for the cryptocurrency industry to get their voices heard.

Katherine Dowling from Bitwise, a crypto investment firm, acknowledges the intense competition for attention in the crypto world but emphasizes the need to keep advocating. Crypto companies are increasingly focusing on Washington, D.C., to deal with rising regulatory scrutiny, particularly from the SEC. The SEC's lawsuits against Coinbase and Binance have intensified lobbying efforts by these crypto firms. They're pushing for SEC approval of a Bitcoin ETF and want a say in shaping cryptocurrency regulations.

The cryptocurrency industry has been pretty busy when it comes to politics. They spent around $13 million on lobbying in the first half of 2023, which is a lot of money. Last year, they spent even more, about $21.6 million. Coinbase, one of the biggest crypto exchanges, led the way by spending $1.4 million.

The crypto folks had a delegation in Washington, D.C. This group included Coinbase's CEO, Brian Armstrong, who met with both Democrats and Republicans in Congress. There was also someone from OpenSea, which is a big marketplace for non-fungible tokens (NFTs).

The reason they're doing all of this is that they want to make sure the government doesn't come along and mess things up for them. They're concerned about regulations and want to have a say in how they're made.

OpenSea is happy that politicians are interested in NFTs and they're hoping for a friendly and cooperative approach to regulation that doesn't stifle innovation or harm users.

Coinbase is taking things a step further by running a media campaign. They're putting up ads in Washington and encouraging people who use their platform to contact their representatives in Congress and ask for favorable crypto laws.

However, it's not certain if all these efforts will actually make a big difference in politics, as some experts are unsure if this sudden push for grassroots support will have a significant political impact.

↗️ Rising Three Methods

The "rising three methods pattern" is a noteworthy phenomenon you might come across when analyzing the price movement of a stock or cryptocurrency, typically occurring during periods of upward price trends. This pattern unfolds in a specific way: first, you'll see a long green candlestick on the price chart, indicating a significant price increase over a defined timeframe, like a day or an hour. Following this, there are three consecutive small red candlesticks, signifying minor price drops, though not substantial ones. To complete the pattern, there's another long green candlestick, indicating a renewed upward surge in the price. In essence, this pattern suggests that the prevailing uptrend is likely to persist, offering traders and investors valuable insights into potential future price movements. It's akin to a runner momentarily slowing down during a marathon but then resuming the race with renewed vigor.