Crypto Market News: Few months after the U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit against top crypto exchange Binance, the U.S. Securities and Exchange Commission (SEC) had on Monday followed suit by charging the company with mishandling user funds and lying to regulators. Interestingly, the agency called several cryptocurrencies including some of the top 10 ranked tokens, as securities. Meanwhile, the new SEC Binance lawsuit comes as yet another major stumbling block not just for Binance but the entire crypto market.
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In March 2023, the CFTC alleged that the exchange breached US laws to solicit local users for millions in revenue. The latest lawsuit puts Binance in possibly the worst position legally, as two of the top US financial regulators have charged it.
Solana (SOL), Cardano (ADA), Polygon (MATIC) Are Securities?
On Monday, the agency filed as many as 13 charges against the crypto exchange with the highest trading volume in the world. It alleged that Binance co-founder Changpeng Zhao “CZ” mixed billions worth of funds to transfer them to a Europe based company. More importantly for the crypto trader community, the SEC’s complaint mentioned that Cardano (ADA), Polygon (MATIC) and Solana (SOL) were being traded on the platform in the form of securities. This adds to the ongoing confusion whether cryptocurrencies, or the types of crypto tokens, are securities or commodities. The complaint called these assets as investment contracts:
“Since the Binance platforms launched, defendants have made available for trading on them crypto assets that are offered and sold as investment contracts, and thus as securities.”
Thankfully, a recent draft proposal from the US lawmakers focuses on addressing these gaps in cryptocurrency regulations. Other cryptocurrencies described as securities are Filecoin (FIL), Cosmos (ATOM) and Sandbox (SAND). The pressing question remains that although the SEC claims many cryptocurrencies to be securities, there are no suitable procedures to follow in terms of registering crypto assets as securities with the agency. Meanwhile, the Bitcoin price took a sharp slump in response to the SEC Binance lawsuit news.
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Big day knocks on the crypto space as the July FED rates are all set to shake up the markets. For the past couple of months, the FOMC meeting schedules have induced high volatility within the crypto space. Mainly due to the reason that the US inflation rates have climbed to a 42-year high and are expected to surge by another 75 bps.
Additionally, the big tech giant’s earnings will also be rolled out soon. This may fuel the induced trend by the FOMC meeting, this weekend.
Therefore, while many analysts predict Bitcoin may find new lows, some of the altcoins are expected to skyrocket.
Polygon(MATIC) Price
Polygon price is attempting to make a positive move ahead of the FOMC meeting as a nice curve much above the lower support of the ascending channel is witnessed. Amid the previous day’s price drain, the asset was expected to drop down below $0.7.
However, as the updated inflation rates are expected to go higher, the crypto space including MATIC price is subjected to act accordingly.
As significant volatility is fast approaching, the MATIC price is expected to climb above $0.86 and in an extended bullish case may also surge above $0.9. However, a pullback is also expected but the bulls seem to be poised and elevate the MATIC price close to $1 levels.
Cardano (ADA) Price
Cardano’s price was on its way to testing the lower support below $0.45 after being rejected from $0.5. However, the upcoming event appears to have induced a notable bullish momentum and hence the buying volume has raised with a decent margin.
Therefore, the next 24 to 48 hours may be pretty crucial for the ADA price as the asset has a golden opportunity to break the bearish pattern and surge high.
As seen in the chart the asset is very close to the apex of the descending triangle and as an outcome, the price was pre-determined to hit the lower support. With the upcoming volatility, the asset is expected to regain the lost level above $0.5 initially. However, if the asset successfully sustains above these levels, then a significant jump targeting $1 may be imminent.