Dogecoin (CRYPTO: DOGE) was trading mostly flat on Wednesday, in tandem with Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), which were muted and trading in a tight daily range.

The Shiba Inu-themed crypto reached another milestone on Tuesday, with data showing there are 492,055 Doge holders on the Binance Smart Chain (BSC) and the tokenized Dogecoin smart contract is the fourth most-used contract on the blockchain, coming in ahead of Ethereum and USD Coin (CRYPTO: USDC).

The milestone shows the Dogecoin community is continuing to grow but on Wednesday, Dogecoin co-creator Billy Markus sent out another thread on Twitter to warn his followers about the negative effects of poor behavior on the crypto and its utility.

He stated that companies will stop accepting Dogecoin, the crypto will stop attracting new people and existing Dogecoin enthusiasts will leave to escape the negative environment.

“It’s important to match your output with our goals,” he said.

Dogecoin has negated a number of possible patterns on its chart now, such as a possible bear flag pattern and a tightening triangle formation that were appearing a few days ago. The crypto now looks to be trading in a horizontal pattern either in an accumulation or distribution phase.

See Also: How China’s State Broadcaster Unwittingly Sent This Dogecoin Knockoff Higher By 2400% On Lunar New Year’s Eve

The Dogecoin Chart: For the past dozen 24-hour trading sessions, Dogecoin has opened and closed within a small 1-cent price range between $0.133 and $0.143. The small daily trading range indicates the crypto is running out of both sellers and buyers. Whether the bulls or the bears come in to take control and break the crypto up or down from the pattern could be seen over the next few days.

• Bullish traders will want to watch for Dogecoin to close a trading session above a resistance level at $0.146, while bearish traders will want to watch for a drop below the $13-cent level.
• A break of the pattern can only be confirmed if higher-than-average volume enters into the crypto.
• On Wednesday, Dogecoin had far below-average volume, measuring in at just 162,000 compared to the 10-day average of 302,368.
• Above the $0.146 level, there is resistance at 16 cents. Below the 13-cent mark, there is support at 12 cents and at the psychologically important level of 10 cents.

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The US Securities and Exchange Commission (SEC) is tightening its regulatory noose around the crypto market. Gary Gensler the current SEC chief in a recent interview to Financial Times issued a stern warning against crypto lenders claiming any platform offering such services cannot avoid regulations.

Gensler said investors in the crypto market deserve the same kind of protection that many enjoy in the traditional market. He explained,

“This crypto space is now certainly of a size that without those investor protections of banking, insurance[and] securities laws [and] market oversight, I do think somebody is going to get hurt,” he said. “A lot of people are likely to get hurt.”

The controversy around crypto lending products began with Coinbase which revealed it had been threatened with a lawsuit over its unreleased stablecoin lending product by the SEC. The crypto exchange in an official blog post blasted SEC for not offering clarity around the security regulations and reasons as to why their product is a security. The leading crypto exchange later decided to drop its lending product plans in a hush-hush manner.

The Fate of Crypto Lenders Remain Uncertain

Coinbase has dropped its plans of crypto lending services after 6-months of failed talks with the SEC, the real focus is now on core cryptos lending platforms such as BlockFi, Celsius, crypto.com, and several others. Celsius is also facing the wrath of regulators in three states and looking at the aggressive stance of SEC it might extend to other similar service providers.

While SEC claims it is open to discussions with service providers, Coinbase’s experience suggests its quite opposite. Gensler in particular who was being hailed as the crypto hero before taking over from Jay Clayton is proving to be a bigger roadblock for crypto innovation.

Gary Gensler just said that companies offering lending products should come into the SEC and discuss how to operate within the perimeter, but @coinbase tried that in advance of launching LEND and were threatened with litigation.

What would you do?

— The Wolf Of All Streets (@scottmelker) September 21, 2021

SEC chief continues to reiterate his stance about the need for tighter regulations to ensure investor protection without offering much clarity on how the SEC plans to do it. Many former regulatory chief and lawmakers including Pat Toomey has called for more clarity from Gensler and SEC.