The next 24 hours are extremely critical for the entire crypto industry for several reasons. Aside from this week’s macroeconomic events, they also have the potential to greatly influence prices in the crypto market. Here are the details…
There are critical events for cryptocurrencies
Today, Tuesday, June 13, the U.S. Securities and Exchange Commission (SEC) will take center stage at least four times. But perhaps the event with the greatest potential impact is the alleged leak of SEC’s internal Hinman documents in the Ripple case. The Hinman documents may shed light on Ethereum (ETH)’s classification as a non-secure asset currently contested by SEC Chairman Gary Gensler. At the very beginning of the legal dispute with Ripple, the SEC requested that the Hinman documents be declared invalid.
In June 2018, William Hinman, then director of the SEC’s finance division, declared in a speech that the cryptocurrency Ethereum should not be considered a security. This is why these documents are of particular importance for Ripple. The SEC request refers to the need to protect the confidentiality of sensitive internal data. Furthermore, the SEC argues that the documents relating to Hinman’s speech are “not relevant” to the proceedings. But Ripple sees the situation completely differently. Just yesterday, Ripple CEO Brad Garlinghouse wrote in a reply tweet:
I wish I could explain more now, but we’ve waited this long (18+ months), so I don’t want to overstep… @s_alderoty and I believe it was worth the wait.
Wish I could go in depth now, but we've waited this long (18+ months), I don't want to overstep… suffice it to say @s_alderoty and I believe they were well worth the wait.
— Brad Garlinghouse (@bgarlinghouse) June 12, 2023
It can be said that the Hinman documents are of great importance not only for Ripple, but for the entire crypto industry. As reported, they also have the potential to refute the SEC’s claims in the Coinbase and Binance lawsuits if they contain statements regarding the classification of secondary market transactions of crypto assets. A bullish response will likely be among the altcoins that have been hit hardest by the SEC’s Binance/Coinbase lawsuits in recent days, not just XRP.
What are the other important events on June 13?
The hearing on the SEC’s temporary restraining order (TRO) against Binance US will also be of great importance. cryptocoin.com As we reported, the SEC asked a Washington DC federal judge last week to freeze the assets of Binance’s US subsidiary. Binance US has since filed an appeal against the SEC’s request. The justifications state that the move would cripple the company’s business and harm its customers.
Binance US claims it has made “significant efforts” to cooperate with the SEC investigation since December 2020. The company also confirms that CEO Changpeng Zhao has a bank account of BAM Trading. But he claims he doesn’t have signing authority for the account. BinanceUS brought in four attorneys from Milbank LLP, including George Canellos, a former co-director of the SEC’s enforcement division, in drafting the problematic crypto platform defense.
Another highlight: The US Securities and Exchange Commission (SEC) also has time to respond to Coinbase’s rulemaking petition. Four weeks ago, the SEC issued an initial response stating that it could take years to set any rules, and in the meantime, enforcement actions will continue. Finally, the public comment period for the expanded stock market definition proposed by the SEC also expires Tuesday. The expanded definition may result in DEXs having to register as stock exchanges.
Legislative requirement in the USA revealed
As ConsenSys attorney Bill Hughes writes, this is compelling evidence of the urgent need for new US legislation. This proposal places the burden of correctly guessing the rules on the blockchain space.
This means anyone who makes a wrong guess, from software companies like ConsenSys to software developers who use our products, could potentially face heavy penalties. “This also allows the SEC to determine after the fact whether a rule has been violated – which is a form of retroactive punishment prohibited by legal process,” Hughes says. Currently, the total crypto market cap is $1.02 trillion after falling below the important 200-day EMA on Saturday.
