BTC Drops Below $22,000 as Crypto Regulation Scrutiny Escalates
According to data from CoinGecko, Bitcoin has dropped to a four-week low of $21,950 as of this writing. The decline comes after the largest crypto by market cap performed exceptionally last month. BTC surged by over 40% since the year began, convincing investors that there could be a bull run in 2023.
In addition, the latest price decline has seen BTC shed nearly $10.4 billion in market cap, currently sitting at $447 billion. The famous cryptocurrency accounts for 39% of the entire market, while Ethereum comes in second with 17%, as per CoinGecko. ETH has declined by 4.6% in the past 24 hours, and now it’s changing hands for $1,560.
Other leading cryptos that have posted price drops include Binance Coin (BNB), which plunged by 3.5% and currently trades at $303.96. Further, Dogecoin (DOGE) and Cardano (ADA) both dropped by 10% in the past day, and at the time of publishing, they are priced at $0.0819 and $0.3607, respectively.
Regulators Intensify Crypto Scrutiny
Thursday’s market drop is fueled by the reports that a US regulator, the Securities and Exchange Commission (SEC), had launched an investigation into Kraken, a well-known crypto exchange. The Commission believes that Kraken has been violating securities laws. As of now, No one from the exchange has come out to deny or confirm these reports.
Moreover, Coinbase boss Brian Armstrong wrote a long thread on Wednesday claiming that he had intel that SEC was planning to block crypto staking on United States soil. He, however, hoped that the agency does not take that road citing that staking is a good innovation in the crypto industry.
Prominent Crypto Player Calls for Clear Regulations
Meanwhile, Michael Demissie, head of digital assets at the Bank of New York Mellon, has called for clear regulations. He says having a proper regulatory framework for the blockchain industry will drive out bad actors and retain those who can deliver reliable services to investors.
While delivering his speech at Afore Consulting’s Annual Fintech and Regulation Conference, Demissie confidently said that cryptocurrencies would be here for a very long time; therefore, relevant authorities needed to step up efforts to regulate the space to ensure investors are well-protected.
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