Five Things to Know in Crypto This Week: FLOKI Flies Amidst SEC Appeal Speculation

Bob Mason
Published: Oct 28, 2023, 07:26 GMT+00:00

BTC-ETF market news fueled demand for cryptos. However, XRP trailed amidst fear of the SEC appealing the Programmatic Sales ruling.

Five Things to Know in Crypto This Week

In this article:

Key Insights:

  • SEC Commissioner dissent over the SEC case against LBRY and its ultimate demise drew investor reaction.
  • SEC and Ripple progress toward settlement talks amidst speculation of the SEC appealing the Programmatic Sales ruling.
  • FLOKI is among the front runners this week following the launch of a staking program.

BTC-Spot ETF Euphoria Sends BTC to $35,000

On Tuesday, BTC struck a 2023 high of $35,264. Notably, BTC last visited the $35,000 handle on the way down from the November 2021 ATH of $69,276.

BTC-spot ETF-related news fueled the breakout to $35,000. Increasing hopes of the SEC approving BTC-spot ETF applications drew investor interest. BlackRock (BLK) listed the iShares Bitcoin Trust (Ticker: IBTC) on Depository Trust & Clearing Corporation (DTCC), which clears NASDAQ trades.

News of BlackRock planning to seed the iShares Bitcoin Trust in October fueled speculation of an imminent SEC approval.

The anticipation of an influx of sticky institutional money drove demand for BTC and the broader market. This week, Monday through Saturday, BTC is up 13.65% to $34,113.

BTC on the move.
BTCUSD Weekly Chart 281023

SEC v Ripple: A Settlement and Appeal Move Threatens XRP

On Tuesday, Judge Analisa Torres signed the order, officially dropping the SEC charges against Ripple co-founder Chris Larsen and CEO Brad Garlinghouse. The Court also ordered the SEC and Ripple to progress to a briefing schedule by November 9, with proposed remedies to the outstanding charges. Outstanding charges relate to the institutional sales of XRP.

The Court order raises the prospect of a settlement in the SEC v Ripple case. However, XRP showed little reaction to the chances of a settlement.

Investor fears of the SEC planning to appeal the Programmatic Sales ruling has impacted buyer appetite for XRP.

Since Judge Analisa Torres rejected the SEC interlocutory appeal, the SEC has progressed swiftly toward a briefing schedule. The market believes the SEC has expedited the case to appeal the Programmatic Sales ruling, permissible after the case.

A successful appeal would shroud the crypto market in uncertainty, with US lawmakers yet to deliver a crypto regulatory framework.

This week, Monday through Saturday, XRP was up by a modest 4.36% to $0.5455.

XRP Trails
XRPUSD Weekly Chart 281023

SEC Dissent: Commissioner Hester Pierce Issues Statement on LBRY Case

SEC Commissioner Hester Peirce released a statement on Friday, dissenting the SEC case against LBRY. According to the statement,

“The Commission has brought many troubling crypto enforcement actions, but the LBRY, Inc. (LBRY) case has especially unsettled me. A statement on the case is overdue. I did not support bringing the case, but have been unable to speak publicly about my concerns while the case has been in litigation.”

Peirce noted that LBRY decided against appealing the Court ruling in favor of the SEC, instead shutting down.

The SEC Commissioner went on to say,

“Are investors and the market really better off now after the Commission’s litigation contributed to the demise of a company that had built a functioning blockchain with a real-world application running on top of it? The case illustrates the arbitrariness and real-life consequences of the Commission’s misguided enforcement-driven approach to crypto.”

The statement drew responses from the crypto community. Former LBRY CEO Jeremy Kauffman had this to say about the statement,

“My impression is Peirce is doing her best under circumstances and political challenges I can’t fathom. I’ve attacked her before but only because she’s the only one human to care enough. This is a thoughtful note that I’m appreciative of.”

The lack of a crypto regulatory framework leaves crypto firms without deep pockets at the mercy of the SEC. Recently, Ripple CEO Brad Garlinghouse said the SEC v Ripple case has cost over $100 million.

FLOKI Outmuscles BTC with New Staking Program

On Thursday, FLOKI (FLOKI) announced the launch of a new staking program commencing on October 27.

FLOKI said it will launch a sister token to reward FLOKI stakers.

This week, Monday through Saturday, FLOKIUSDT was up 48.65% to $0.00003694.

FLOKIUSDT Weekly Chart 281023

Wall Street Journal Article about Hamas and Crypto Draws Crypto Market Ire

On Friday, Coinbase (COIN) Chief Legal Officer Paul Grewal shared an excerpt of a Wall Street Journal correction.

Grewal had this to say,

“This is barely a correction. When your source maintains ‘there is no evidence’ to support the WSJ assertions, saying ‘the PIJ may have used crypto’ isn’t just inaccurate, it’s unacceptable.”

Grewal referred to an Elliptic Statement that countered WSJ claims that Hamas raised millions through crypto. According to the Elliptic statement,

“No public crypto fundraising campaign by a terrorist group has received significant levels of donations, relative to other funding sources.”

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.

Did you find this article useful?