Crypto News: SEC Chair Gensler on a Collision Course with Financial Services Committee

Key Insights:

• The SEC extended the Ark 21Shares and Global X BTC-spot ETF reviews.
• SEC Chair Gary Gensler will face heat over digital asset moves on Capitol Hill today.
• Financial Services Committee members likely to grill Gensler on recent SEC case losses.

SEC Extends BTC-Spot ETF Deadlines

On September 26, the SEC extended the review process for the Ark 21Shares and Global X BTC-spot ETF applications.

The SEC now has until November 21, 2023, to approve or disapprove the Global X application and until January 10, 2024, to approve or disapprove the Ark 21Shares application.

In contrast to the Ark Invest 21Shares extension, the SEC could extend the Global X application for further review. As per the SEC notice,

“[…] or institute proceedings to determine whether to disapprove the proposed rule change.”

The delays to the decisions will likely be a hot topic today, with SEC Chair Gary Gensler on Capitol Hill.

Financial Services Committee and SEC Chair Gensler on a Collision Course

The extensions came despite the SEC receiving a letter from House Financial Services Committee members. Both sides of the aisle called on the SEC to expedite the spot ETF applications.

SEC Chair Gary Gensler could be in for a heated session on Capitol Hill, with lawmakers likely to question the latest SEC moves in the digital asset space.

The Financial Services Committee is holding a hearing today: Oversight of the Securities and Exchange Commission. Crypto advocate Patrick McHenry is Chairman of the Financial Services Committee. Significantly, the co-signers of the letter to the SEC calling on the SEC to progress the ETF applications are all members of the Financial Services Committee.

Likely topics of discussion include the SEC’s recent losses against Ripple and Grayscale; FTX; the SEC motion for interlocutory appeal; the Coinbase (COIN) motion to dismiss; and developments in the crypto-spot ETF market.

A heated meeting and calls for greater oversight of the SEC would offer BTC and ETH price support.

Technical Analysis

Bitcoin Analysis

BTC remained below the 50-day and 200-day EMAs, sending bearish price signals. A BTC return to $26,000 would support a move to the trend line. An adverse crypto market event would support a broad-based crypto sell-off. A fall through the trend line would bring the $25,506 support level into play.

However, favorable updates on the SEC v Ripple and Coinbase cases would support a break above the $26,755 resistance level.

The 14-Daily RSI reading of 45.03 supports a BTC fall through the trend line before entering oversold territory.

Ethereum Analysis

ETH remained below the 50-day and 200-day EMAs, sending bearish price signals. An ETH decline to $1,550 would support an ETH move to the $1,502 support level. The Financial Services Committee Hearing on Capitol Hill will likely influence buyer appetite.

Anti-crypto rhetoric on Capitol Hill would support the current bearish trend.

However, a break above the $1,626 resistance level would support an ETH move to the 50-day EMA.

The 14-Daily RSI reading of 42.21 supports an ETH fall to the $1,502 support level before entering oversold territory.