Bitcoin and Ethereum rebound while the SEC and Crypto.com enter legal battle
DATA from CryptoCompare shows that the price of Bitcoin saw an initial downward movement at the beginning of the past week and saw a drop to just below the $60,000 mark before it started recovering, with the cryptocurrency now trading at $64,800 after a significant early Monday rally.
Ethereum’s Ether - the second-largest cryptocurrency by market capitalisation – saw a similar performance, starting the week with a drop to $2,340 before surging to now trade at $2,530 after rising nearly 3% in the past 24-hour period.
Headlines in the cryptocurrency space this week pointed out that Bitcoin bounced back from a decline in the second quarter of the year and, according to a recent research note from Greg Cipolaro, Global Head of Research at NYDIG, remains largely rangebound, fluctuating between $54,000 and $70,000 for most of the past six month.
The report notes that many Bitcoin investors found the third quarter of the year a frustrating one as small-cap stocks, real estate, and utilities outperformed the cryptocurrency.
Despite its performance year-to-date, its sluggish third quarter took a toll on spot trading volumes, with CCData’s latest Exchange Review report detailing that in September, these fell 17.2% to $1.27 trillion, in the first monthly decline in three months.
Over the week, the Hong Kong Securities and Futures Commission (SFC) revealed it’s set to approve additional cryptocurrency exchanges by the end of the year, with 11 platforms undergoing on-site reviews to further progress on their applications.
This week also saw a new HBO documentary, "Money Electric: The Bitcoin Mystery" set the cryptocurrency community abuzz as it pointed to Canadian software developer Peter Todd as the person behind the Satoshi Nakamoto entity that created Bitcoin.
The documentary relies on circumstantial evidence to proposed Todd could be Nakamoto, including early Bitcoin forum posts. Todd dismissed the idea and called it “ludicrous.” The identity of Satoshi Nakamoto has been one of the biggest mysteries in the cryptocurrency world since Bitcoin's inception in 2009. Over the years, various people have been suggested as Nakamoto, but every potential candidate has denied being the creator of Bitcoin.
Crypto.com sues SEC for agency’s ‘overreach’
After receiving a Wells notice from the US Securities and Exchange Commission (SEC), popular cryptocurrency exchange Crypto.com filed a lawsuit against the regulator, arguing its “unauthorised overreach and unlawful rulemaking regarding crypto must stop".
The exchange contends that the SEC has improperly classified nearly all crypto asset transactions as securities while excluding Bitcoin and Ether from this classification, while also arguing that the SEC’s actions are inconsistent and that similar transactions involving BTC and ETH are treated differently without justification.
Crypto.com’s lawsuit claims the regulator imposed this rule without following the required notice and comment period under the Administrative Procedure Act, making its actions “arbitrary and capricious.”
Meanwhile, Nasdaq-listed cryptocurrency exchange Coinbase urged the court to grant an interlocutory appeal in its ongoing legal battle with the SEC, following a similar appeal recently filed by the agency in its case against Ripple.
Coinbase initially filed for the interlocutory appeal in April 2024, aiming to have the Second Circuit of Appeals review a critical question: how the Howey Test—a legal standard set by the Supreme Court in 1946 to determine what qualifies as a security—applies to digital assets.
Coinbase’s lawyers highlighted the complexity and contentiousness of this issue, noting that opinions are divided among lawmakers, regulatory bodies, and courts. The SEC opposed Coinbase’s request, arguing it had no “substantial ground for difference of opinion.”
The exchange also revealed this week it’s set to delist unauthorized stablecoins in the Europe Union to comply with the EU's Markets in Crypto Assets (MiCA) regulations, which require stablecoin issuers to hold an e-money license in at least one of the 27 EU member states to continue operations within the region.
FTX customers to receive full repayment after court clears $16.5bn plan
Over the week FTX received court approval to repay customers whose digital assets were trapped on the platform after its collapse nearly two years ago. The approval will also see shareholders receive part of $1 billion in seize assets.
After FTX’s collapse in November 2022, $12.6 billion in assets have been recovered, with the figure potentially increasing to $16.5 billion after all platform assets are sold, with assets including sakes in various ventures.
Attorney Ken Pasquale, representing the creditors, noted that the crypto market rebound over the last year has played a crucial role in increasing the value of FTX’s assets. This increase allowed FTX to negotiate agreements with creditors and regulators, improving customer recovery prospects.
Francisco Memoria is a content creator at CryptoCompare who’s in love with technology and focuses on helping people see the value digital currencies have. His work has been published in numerous reputable industry publications. Francisco holds various cryptocurrencies.
