In today’s Market Report episode, analyst and writer Marcel Pechman discusses the impact of regulatory constraints on Bitcoin’s potential growth and the likelihood of its value dropping to $28,000. The show is broadcasted every Tuesday on the Cointelegraph Markets & Research YouTube channel.
Pechman’s first topic covers the recent charges filed by the SEC against Bittrex and its founder. Pechman notes that SEC Enforcement Division Director Gurbir Grewal’s statement indicates that the charges should serve as a warning to other non-compliant crypto exchanges, such as Binance, Bybit, and OKX, which have reportedly been serving U.S. clients through deceptive tactics. Pechman predicts that the SEC’s case against Bittrex will likely result in a hefty fine and the exchange’s shutdown in the U.S.
Next, Pechman discusses the draft bill proposed by the U.S. Congress on stablecoins, which requires issuers to register or face up to five years in prison. The bill also includes a two-year ban on creating stablecoins not backed by tangible assets. Pechman believes that algorithmic-backed stablecoins and any operation not backed by U.S. dollars or short-term bonds denominated in U.S. currencies are likely to face greater restrictions.
However, Pechman reassures viewers that there is no need to panic-sell stablecoins, as the impact on USDT and DAI is yet to be determined by voting and court rulings.
In the last segment of The Market Report, Pechman analyzes the extent of the U.S. court’s power over Justin Sun, founder of Tron. Pechman argues that the recent charges against crypto businesses and payment processors five years after their launch indicates regulatory desperation. Pechman predicts that given the current regulatory climate, Bitcoin may potentially retest the $28,000 level.
Don’t forget to tune in to The Market Report every Tuesday on the Cointelegraph Markets & Research YouTube channel for more updates on the crypto market. Like and subscribe to stay updated on our future videos.