Crypto News: SEC Chair Gary Gensler Targets Cryptos in Halloween Message

Bob Mason
Published: Nov 1, 2023, 06:58 GMT+00:00

Senator Cynthia Lummis is becoming more vocal on Capitol Hill, which could prove to be a positive move for the US digital asset space.

Crypto News

In this article:

Key Insights:

  • SEC Chair Gary Gensler sends Halloween tweets targeting the crypto space.
  • Senator Cynthia Lummis addresses the misconception of crypto and illicit finance.
  • Coinbase showcases the success of the StandWithCrypto campaign.

SEC Chair Gary Gensler Sparks Crypto Community Ire

On Tuesday, SEC Chair Gary Gensler tweeted Halloween messages targeting the digital asset space.

Referencing Satoshi Nakamoto, Gensler wrote,

“If Satoshi Nakamoto went as Satoshi Nakamoto for Halloween, would we be able to tell? Happy 15th Anniversary to Satoshi’s famous white paper that started crypto. Any crypto companies that are tricking investors should start treating them to compliance with securities laws.”

The SEC Chair posted a second tweet, saying,

“Avoid getting tricked out of your money: Make sure you’re dealing with a registered investment professional. Take time when making investment decisions. Don’t fall for ‘can’t miss’ opportunities.”

Ripple Chief Legal Officer Stuart Alderoty responded to the Gensler snipes, saying,

“While Mr. Gensler is making bad Halloween jokes on X, his agency is being shamed for ignoring the law […].”

Alderoty referenced a federal agency analysis of SAB 121, where the SEC allegedly circumvented the rule-making process.

Illicit Use of Cryptos? Lawmakers Responded Further to the WSJ Article

On Tuesday, US Senator Cynthia Lummis reacted further to the WSJ Article stating Hamas raised millions in crypto.

Senator Cynthia Lummis had this to say about the WSJ claims,

“An inaccurate report last week claimed Hamas raised nearly $100 million via crypto assets. In reality, it was less than $500,000. This encapsulated the misconception that crypto is a tool for illicit finance when it accounts for less than 1% of global illicit finance activity.”

Senator Lummis shared the stats, which put total illicit finance at $2.9 trillion vs. $20 billion for crypto, 0.69%.

Senator Lummis went on to say,

“After the reports that Binance and Tether engaged in illicit activities, I sent a letter encouraging the DOJ to finish its investigation, follow the evidence, and consider criminal charges. Because illegal activity is illegal no matter who does it.”

Senator Lummis concluded,

“Make no mistake, crypto assets are NOT the problem. Bad actors, who exist in every sector, are. The future for crypto assets in America is brighter than ever.”

Coinbase Showcases the Success of StandWithCrypto

Coinbase (COIN) CEO Brian Armstrong reposted a Coinbase progress report on the StandWithCrypto movement. The statistics demonstrated the level of support for the US digital asset space. According to Coinbase,

    • 100k+ crypto advocate signups.
    • $2M+ in pro-crypto donations.
    • 16k+ calls and emails to Congress.

In September, Coinbase launched the StandWithCrypto campaign to expedite crypto regulations. The campaign highlighted 52 million Americans holding crypto.

Coinbase is in a legal battle with the SEC. Investors await a court ruling on the Coinbase motion to dismiss (MTD). A ruling in favor of Coinbase could materially alter the anti-crypto landscape.

In August, Senator Cynthia Lummis filed an Amicus Curiae brief supporting the MTD.

Technical Analysis

Bitcoin Analysis

BTC held above the 50-day and 200-day EMAs, sending bullish price signals.

A BTC break above the October 24 high of $35,264 and the $35,265 resistance level would support a move to the $36,400 resistance level. BTC-spot ETF application-related news and SEC activity remain the focal points.

However, a BTC drop below $34,000 would give the bears a run at the $32,436 support level.

The 14-Daily RSI reading of 77.37 shows BTC sitting in overbought territory, suggesting intensifying selling pressure.

BTC Daily Chart sends bullish price signals.
BTCUSD 011123 Daily Chart

Ethereum Analysis

ETH remained above the 50-day and 200-day EMAs, affirming bullish price signals.

An ETH break above the $1,805 resistance level would support a move to the October 26 high of $1,868. A move through $1,868 would bring the trend line and the $1,926 resistance level into play.

SEC activity and ETH-spot ETF news are the focal points on Wednesday pre-Fed.

Failure to break above the $1,805 resistance level would give the bears a run at the $1,741 support level and the 200-day EMA.

ETH sits on the border of overbought territory with a 14-Daily RSI reading of 67.77. Seller pressure could intensify at $1,830.

ETH Daily Chart sends bullish price signals.
ETHUSD 011123 Daily Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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