Crypto News: Coinbase CEO Armstrong Talks Legislation, SEC, and Global Crypto Pre-SBF Trial
- Coinbase CEO Brian Armstrong highlighted that 83% of G20 countries have or are implementing crypto legislation.
- Armstrong also observed positive legislative development for cryptos in the US.
- Next week, the spotlight turns to SBF and the October 4 trial date.
Coinbase CEO Brian Armstrong Talks to CNBC
“From our perspective, there has been a pretty positive development. We saw two bills earlier this year that got bipartisan support in the House committees. There was a market structure bill and a stablecoin bill. In fact, that was really positive.”
Armstrong went on to say,
“We also saw the judicial branch of our government send a very clear signal in three separate court rulings by three separate judges that the SEC’s approach was not working. It was arbitrary and capricious, it was unlawful in some cases, so that sent a clear message to Congress as well that they’re going to have to step in here and act by creating new legislation.”
Discussing the SEC v Coinbase case, the Coinbase CEO said he was confident, adding,
“In the Ripple and the Terraform case, the Judge ruled that the underlying assets themselves were not securities. That’s an important fact in our case as well.”
On the issue of the US regulatory landscape, Armstrong said,
“It would have been better if the regulator had simply published clear rules, had engaged in a rule-making process as they’re required to do under the Administrative Procedures Act, and that way we could all follow it. But, in the absence of that, it appears now that the courts are going to have to come in, and create some of that clarity for now, and I think ultimately, it will end up being Congress.”
Discussing the global crypto landscape, Armstrong saw the US severely behind, saying,
“If you look at the other G20 countries, 83% of them now either already have crypto legislation on the books or it’s in progress, it being drafted, implemented.”
Sam Bankman-Fried Trial to Begin on October 4
The collapse of FTX and the lack of a formal crypto regulatory framework will come under scrutiny next week.
Sam Bankman-Fried faces seven charges, six of which are conspiracy charges. Originally, the US Department of Justice charged SBF with eight counts of fraud, money laundering, and campaign finance offenses.
SBF faces a maximum statutory term of 110 years if found guilty on all charges.
Other firms are likely to get pulled into the trial and face scrutiny by association.
On Friday, the SEC charged international accounting firm Prager Metis with hundreds of auditor independence violations. The alleged violations took place between December 2017 and October 2020. There were no references to FTX in the filing.
However, a November 2022 class action filing named Prager Metis alongside SBF and Caroline Ellison, among others, as the defendants.
US lawmaker chatter and SEC v Coinbase and Ripple case-related news will influence investor sentiment. Reports of the US government inching closer to averting a shutdown may also offer support. The SEC may progress the review of crypto-spot ETF applications and move closer to approving a first crypto spot ETF in the US.
A break below the 200-day and 50-day EMAs would support a BTC fall through the $26,755 support level and bring the trend line into play.
The 14-Daily RSI reading of 56.95 supports a BTC return to $27,500 before entering overbought territory.
ETH remained above the 50-day EMA while sitting below the 200-day EMA, sending bullish near-term but bearish longer-term price signals.
An ETH fall through the 50-day EMA would support a move to the $1,626 support level.
However, an ETH return to $1,700 would give the bulls a run at the 200-day EMA and $1,746 resistance level.
After the SEC approval of the ETH-futures ETFs, ETH-spot ETF-related news will influence investor sentiment.
The 14-Daily RSI reading of 59.42 indicates an ETH return to $1,700 before entering overbought territory.