Crypto flat as markets await tech earnings
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Good morning. Here’s what happens:
Prices: Crypto markets are playing the waiting game as tech’s expected mixed earnings could push things down as the week progresses.
Insight: Do Kwon is in a prison in Montenegro on charges that he sold unregistered securities, but his lawyers raised a fair point about the SEC seeking unlimited jurisdiction over the asset class.
Prices
CoinDesk Market Index (CMI)
1,192
-11.8 ▼ 1.0%
Bitcoin (BTC)
$27,514
−335.0 ▼ 1.2%
Ethereum (ETH)
$1845
-37.6 ▼ 2.0%
S&P 500
4,137.04
+3.5 ▲ 0.1%
Gold
$2007
+27.5 ▲ 1.4%
Nikkei 225
28,593.52
+29.2 ▲ 0.1%
BTC/ETH prices per CoinDesk indices, as of 07:00 ET (11:00 UTC)
Good morning, Asia.
Markets in the region open flat, with both the crypto and TradFi markets not doing much.
Bitcoin is currently at $27,514 down 1.2% while Ether is down 2% to $1845.
Ether’s relatively stagnant position comes as the protocol’s Shanghai upgrade brings record inflows into the ecosystem as players reinvest their rewards.
Data from Coinglass shows that while the market remains relatively flat, the majority of liquidations come from short positions, suggesting that the market has legs.
Around Asia, the Nikkei 225 opened slightly in the green at 28,714, while Korea’s KOPSI is flat at 2,521.
In the US, Wall Street is awaiting earnings from Microsoft and Alphabet, which are scheduled for April 25.
Crypto remains closely correlated with the NASDAQ, as CoinDesk reported earlier this month, reiterating the narrative that it is another risk asset rather than a safe haven from economic malaise, thus making tech earnings as important as ever.
Biggest winners
Biggest losers
Insight
Does Kwon have a point
Do Kwon is back in court in the US – via his lawyers while in prison in Montenegro – asking that the Security and Exchange Commission’s (SEC) case against him alleging that he sold unregistered securities be dismissed. UST is currency, not a security, is the argument presented.
The SEC lacks a “clear congressional authorization” to regulate digital assets, the document says, noting that the CFTC chairman has changed his mind “about whether cryptocurrencies are securities, and currently maintains that stablecoins (like UST) are not.”
Kwon isn’t the only target here. The SEC continues its campaign for regulation by enforcement: trying to get insider trading charges added to a case of a fired Coinbase product manager, thereby casting a wide net to call anything a security; or sneaking claims that all exchange symbols are securities into a complaint against former Alameda COO Caroline Ellison that went unchallenged when she filed a plea deal with prosecutors.
“Backdoor regulations” is one way of describing it.
In contrast, many jurisdictions in Asia are moving in the opposite direction: creating legal frameworks to properly define crypto – not using mid-twentieth century frameworks – and regulating it as the unique asset class it is. The Monetary Authority of Singapore has already set this up, Hong Kong is working on its own framework, and even Taiwan is rolling out a rulebook.
Kwon is no saint, and is in a lot of trouble after being caught in Montenegro with a fake passport. But his lawyer makes a good case for crypto regulation in the US, and the SEC’s quest for unlimited jurisdiction over the asset class.
Perhaps in the event, he will set an important precedent for the future of crypto regulation in the United States, and in the end, we will thank him for accelerating a push for regulatory clarity.
Important events.
Consensus 2023 (April 26-28)
21:00 HKT/SGT (13:00 UTC) House price index in the USA (MoM/Feb)
22:00 HKT/SGT (14:00 UTC) Sales of new homes in the USA (MoM/March)
CoinDesk TV
In case you missed it, here’s the latest episode of “First Mover” on CoinDesk TV:
Rep. Davidson on the Future of US Crypto Regulation; Bitcoin Ties for Third Day in a Row
Rep. Warren Davidson (R-Ohio) joined “First Mover” to discuss the future of US crypto regulation and explained why he wants to restructure the Securities and Exchange Commission and called for the removal of SEC Chairman Gary Gensler. This came as bitcoin (BTC) fell for a third straight day, hitting a 24-hour low of $27,844.46. PV01 boss Max Boonen and Crypto are macro. Now economist Noelle Acheson also joined the conversation. Acheson is also the former head of research at CoinDesk and Genesis Trading.
Headings
What can you expect at Consensus 2023: From Solana phones to the future of US crypto politics, here’s what to look for at crypto’s Big Tent event – Consensus.
Zimbabwe to introduce gold-backed digital currency, report: The country’s central bank wants people to be able to exchange Zimbabwean dollars for the gold-backed token so they can hedge against the currency’s volatility.
Wrapped Bitcoin Token Goes Live on Cardano Testnet: The AnetaBTC project aims to attract bitcoin liquidity to the Cardano ecosystem.
Terras Do Kwon wants the SEC charges dismissed, court filings show: The SEC cannot regulate digital assets involved in the case because the UST stablecoin is a currency, not a value, lawyers for Kwon have said.
Bitcoin price could reach $100,000 by the end of the year, says Standard Chartered Bank: A report from the firm noted that crypto winter is finally over and bitcoin halving is set to be a positive catalyst for the price.
