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Crypto investors are facing a challenging week ahead, with several critical developments on the horizon. The Federal Reserve meeting is scheduled for this week, and tomorrow we will receive the August inflation data. Investors have valid reasons to worry amidst concerns that the downward trend in inflation may be coming to an end. In addition to all this, Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), will make some significant statements today.
SEC Chairman’s Crypto Remarks
Gary Gensler, the chairman of the United States Securities and Exchange Commission, will participate in a Senate hearing today. It is expected that Gensler will focus on the need for most cryptocurrencies to be considered securities. The document titled “Gensler’s Testimony” provides a preview of the presentation he will deliver before the Senate Committee on Banking, Housing, and Urban Affairs today.
The document includes the following details:
“There is nothing to suggest that investors and issuers of crypto assets are less deserving of the protections of our securities laws. Given that most crypto tokens are securities, it follows that most crypto intermediaries should also comply with securities laws.”
How Will Cryptocurrencies Be Affected?
The SEC Chairman has been fighting for years to classify crypto investment products as securities. Today, we will witness the next phase of this struggle. The SEC initiated legal proceedings against two exchanges on June 5th and 7th, respectively. While Binance is fighting a series of allegations, both exchanges share the common accusation of providing unregistered crypto services.
Today’s statements are likely to be unfavorable for cryptocurrencies. However, if the Senate members push Gensler hard, the situation could change. The SEC Chairman, who left many questions unanswered in previous statements, must now present convincing arguments before the Senate. Questions regarding the approval of a Spot Bitcoin ETF may also arise, which could further impact cryptocurrency volatility.
At the time of writing this article, the price of Bitcoin is at $26,145. The rapid recovery following yesterday’s decline is promising. Tomorrow, the inflation data will be announced, and we anticipate approval of the FTX asset liquidation. Considering the upcoming Federal Reserve meeting next week, investors are facing a challenging seven days.
