Bitcoin is rebounding despite the SEC’s Crypto Warning
BTC/USD is trading at 28,011, up 1.57% over the past 24 hours. The ongoing banking crisis and fed dovish rate hikes sparked the recent crypto rally. And, the gains in the border crypto market, including Bitcoin, were accelerated on Friday despite the SEC’s fresh warning. The US regulatory authority advised investors to exercise caution while considering cryptocurrency investments. However, investors bashed the agency for criticising the digital asset industry. Instead, they expressed more confidence by increasing their positions in Bitcoin, which drove its prices higher.
SEC Issue Warning against Crypto Investment; Bitcoin rises instead
The Securities and Exchange Commission (SEC) has been keeping an eye on the cryptocurrency market for a long time. Investors’ concerns have grown due to unclear regulations and the latest failure of crypto firms and tokens. Therefore, the regulatory agency has issued a warning alert for potential cryptocurrency investors in response to these worries.
On March 23, the US SEC warned investors that the cryptocurrency industry lacks crucial investor security. It cautioned investors against investing in crypto asset securities. According to the regulatory authority, there is a significant risk of loss due to the market’s extreme volatility and speculative nature.
Moreover, the SEC targeted cryptocurrency service providers, alleging they may not abide by the securities rules when offering services or investments in digital assets.
On March 22, the SEC issued a Wells Notice to Coinbase claiming difficulties with the listed digital assets, their staking services, and other concerns. In essence, the letter was a warning from the SEC to the company that it would start an enforcement action over the suspected securities law violation.
On the other side, Coinbase has asserted that it is confident in the legitimacy of its assets and services. However, after getting a Formal notice from the SEC, it has stopped offering Algorand staking rewards to retail consumers.
The SEC’s investigation against Coinbase and its crypto warning has put pressure on the broader crypto sector. As a result, there was a brief pause in the Bitcoin rally in the early trading hours. However, the largest cryptocurrency by market cap rebounded again and continued its upward rally, as crypto enthusiasts came in front to defend the market.
Crypto Community Upset over SEC’s warning
The cryptocurrency community is having a day criticizing the SEC for unfairly regulating both the crypto sector and the conventional banking system. After receiving a caution from the SEC warning that investing in crypto assets is dangerous, crypto enthusiasts expressed their concerns to the agency. Therefore, the leading cryptocurrency, BTC, surged in value as investors show their confidence in digital assets.
Jake Chervinsky, the Chief Policy Officer of the Blockchain Association, voiced his frustration with the SEC’s decision on March 23. He tweeted that Coinbase had made a significant effort to obtain regulatory clarification from the SEC. He continued by saying that the SEC frequently receives criticism for enforcing regulations.
Furthermore, cryptocurrency enthusiasts criticized the SEC by pointing out that the US government just created $300 billion out of thin air to bail out banks, a move that experts fear may cause the country to enter hyperinflation.
Therefore, Bitcoin and other digital assets have resumed their upward trend as the crypto community expresses confidence in the cryptocurrency sector and criticizes the SEC for targeting the industry.
As a result, BTC/USD continued its surge after a brief pause since investors are still bullish on the asset class.