It’s been an amazing week in the crypto space, with main talking points centering on both official state regulation and crypto companies self-regulation.
Coinbase and Gemini made waves by launching new offshore crypto derivatives exchanges, exclusive to non-US customers, despite mounting regulatory pressure from the USSecurities and Exchange Commission (SEC). Coinbase launched its platform in Bermuda, while Gemini’s platform is available in 30 jurisdictions worldwide.
This move by two of the biggest crypto exchanges showcases their determination to expand their offerings while navigating the complex US regulatory landscape. It’s a development investors will want to keep a keen eye on.
Binance featured twice – first by abandoning its $1.3 billion deal to acquire bankrupt crypto lender Voyager, citing “hostile and uncertain regulatory climate” in the US, then putting the brakes on a $56million transfer from Tron’s Justin Sun because of concerns that CEO Sun might use the funds to farm the new SUI token via Binance’sLaunchpool platform.
Although it meant the end of Voyager’s crypto journey as it liquidated its assets, these acts by Binance demonstrateits recognition of the importance of clear regulatory frameworks to foster stability and growth in the crypto space and dedication to maintaining a fair and transparent market.
As for the SEC, it found itself cornered as the Third Circuit Court of Appeals mandated the regulator to file a response to Coinbase’s complaint over its approach to securities laws for digital assets within a 10-day window, after which Coinbase can respond in seven days.
Again, the outcome of this case should bring much-needed clarity to the crypto regulatory landscape and to investors which may help them make more confident crypto investing decisions.
Meanwhile, the Fed Reserve issued another 25 basis point hikewith no explicit promise of a pause. This at a time when the private job market increased to 290,000, while elsewhere there was a general employment increase of 253,000.
The strong labour market reports shows a robust labour market which is going against the FEDs QT approach and therefore could cause inflation to stay sticky. This in turn might create indecision among investors unsure where to turn. None of which was helped by the US Treasury Secretary Janet Yellen warning president Biden that the US could run out of money and default on its debt by 1st June 2023.
Such high impact news could cause either fear to re-enter the market or the continuation of the current bullish run, this bullishness augmented by news that Apple’ssecond-fiscal quarter earnings on Thursday beat Wall Street’s soft expectations by $2 billion, standing at $94.8 billion.
Apple (AAPL) currently trading down 1% since earnings could make it a good investment to get into.