Long-term and permanent Ethereum holders took advantage of the huge supply of ETH by buying the decline. It seems expected that the price of ETH will rise to $4,000.
With Chairman of the U.S. Securities and Exchange Gary Gensler announcing that the spot Ethereum (ETH) ETF would be approved by the end of this summer, all eyes are on Ethereum right now. While the ETH community was somewhat encouraged by this news, the price of Ethereum, which is now trading below $3,500, has not yet reflected these developments.
Ethereum demand skyrockets
According to Julio Moreno, head of research at CryptoQuant, there is now a notable increase in the market demand for Ethereum. Moreno reports that yesterday’s purchase of 298,000 ETH by permanent ETH holders was the second-highest daily buy in history.
Up till this point, September 11, 2023, stands as the record for the greatest day purchase, when ETH holders acquired 317,000 ETF. But even the recent surge in demand for Ethereum shows how long-term investors’ interest and trust in the cryptocurrency sector are expanding.
Since the price of ETH has dropped by more than 9% over the last seven days, there has been a sharp increase in demand for the cryptocurrency. As we saw, nevertheless, the second-largest cryptocurrency in the world continues to demonstrate strength in the on-chain metrics.
Ethereum withdrew a staggering 300K from the Coinbase exchange, making it one of the biggest withdrawals of 2024, according to report. As a result, the Ethereum withdrawal’s total value has increased to above $1 billion.
ETH price action ahead?
Even with encouraging on-chain signals, the bulls in ETH haven’t been able to seize enough momentum to push the price higher than $4,000. Ethereum is now trading just below $3,500, which is a critical support level.
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When ETH’s price fell below $3,500 in April of last year, it resulted in a 25% decrease that by May 2 had plummeted to $2,814 at its lowest point. Everyone’s attention will be focused on how quickly the SEC chair approves the spot Ethereum ETF to begin trading. As we observed with the approval of the spot Bitcoin ETF, this is probably going to infuse significant capital inflows.
Ripple Labs calls SEC’s $2B fine excessive, cities Terraform Labs case
Ripple Labs is retaliating against the $2 billion fine imposed by the US Securities and Exchange Commission (SEC), arguing that it is disproportionate.
In a notice of additional authority submitted on Thursday, the company emphasized the need of taking just and uniform regulatory action. The ongoing legal dispute highlights more general concerns about the uniformity and equity of the sanctions the SEC imposes on the cryptocurrency sector.
Ripple Labs wants to pay no more than $10M in fines
The SEC’s demand that Ripple pay almost $2 billion in fines for selling XRP to institutional investors is at the center of the conflict. The legal team for Ripple draws a comparison between this and the Terraform Labs case, where substantial fraud allegations were found but fines were far less harsh.
In that instance, despite the fact that their fraudulent actions wiped almost $40 billion in investor cash, Terraform Labs and its CEO, Do Hyeong Kwon, were hit with fines equal to roughly 1.27% of their $33 billion in global sales.
The $2 billion proposed punishment, according to Ripple’s attorneys, is much more than the standards set in situations like this. Their investigation showed that in similar cases, fines often varied between 0.6% and 1.8% of gross sales.
“Here, by contrast, the SEC seeks a civil penalty far exceeding that range, even though there are no allegations of fraud in this case and institutional buyers did not suffer substantial losses,” SEC lawyers argued.
Therefore, they suggest a significantly more modest penalty for Ripple, limited at $10 million—much less than the SEC’s present estimate. A number of legal professionals back Ripple’s assertions. For example, Bill Morgan disapproved of the SEC’s strategy.
“This supplemental authority draws attention to the strange animus that the SEC continues to show towards Ripple. The behavior of the SEC towards Ripple seems very ill-motivated,” Morgan said.
Additionally, in April 2024, Ripple vehemently contested the SEC’s requests in the wake of the court decision from the previous year, which admitted that the company had violated federal securities laws by selling XRP to institutions. The court did, however, rule in favor of Ripple, finding that its previous XRP payouts were not investment contracts.
Ripple maintains that the SEC’s requests for penalties are excessive and a sign of overreaching regulations. This is so since the results showed no evidence of careless or dishonest behavior.
Ripple’s attorneys highlight that fines ought to be more in line with the real consequences of the claimed offenses and the defendant’s intentions by referencing Supreme Court and Circuit court precedents.
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Billionaire Mark Cuban says Gary Gensler can cost Joe Biden the election
Billionaire Mark Cuban is not fond of the way SEC Chair Gary Gensler has handled matters pertaining to cryptocurrencies. He claimed the SEC registration procedure presents significant obstacles for American cryptocurrency startups.
The Biden administration’s stance on the cryptocurrency market has lately undergone a significant change, but leading sector participants are dissatisfied with SEC Chair Gary Gensler’s handling of crypto-related matters. The multibillionaire Mark Cuban has practically threatened to cost President Joe Biden the 2024 presidential race by endorsing Gary Gensler.
Mark Cuban lashes out at Gary Gensler
Fox Business Announced According to Eleanor Terret, billionaire Mark Cuban has strongly criticized SEC Chair Gary Gensler, implying that he can use his position to undermine Biden in the next election.
Cuban continued by saying that Gensler’s stance on digital assets would turn off younger voters who hold cryptocurrency. Cuban said of Gensler, “If he has a political career in mind, he’s done.”
Speaking at the Coinbase State of Crypto event, Cuban told the attendees that he is informing governors, senators, and representatives that the SEC registration process poses major challenges to American crypto companies. He called this issue a “uniquely American Gary Gensler problem”.
SEC should prioritize on crypto regulatory clarity
Cuban is not the only one criticizing the SEC for its slow-moving approach to cryptocurrency regulation. Gary Gensler has also been pushed by Senator Bill Hagerty to give the regulation of cryptocurrencies a priority. The Senator went on to say that in order to keep the cryptocurrency business from moving abroad, there must be a healthy environment. “This industry needs to have a proper ecosystem…so we’re not shoving it offshore,” Hagerty said.
The SEC chair, in response, contended that violating the law and not like the law are not the same thing as unclear laws. One encouraging development, though, is that the SEC chair has guaranteed that the Ethereum ETF will be approved by this summer.
Hagerty stated that there is still a great deal of ambiguity and confusion coming from the SEC despite Gensler’s remarks, adding that it “need not be that way.”
Senator Dick Durbin also asked Gary Gensler if the Commodities and Futures Trading Commission (CFTC) had enough funding to oversee the cryptocurrency sector.
Responding to this, Gensler said that it “depends on what they’re given,” noting that the CFTC lacks the established disclosure regime that the SEC has in place.
