Prepare For A Crypto Shakeup: SEC Crackdown, CPI Data, Fed Interest Rates Upcoming

After experiencing a tumultuous trading week due to the U.S. Securities and Exchange Commission (SEC) charging Coinbase Global Inc. (NASDAQ: COIN) and Binance Labs with listing unregistered securities, crypto traders should prepare themselves for more volatility in the coming week. Several high-impact news events are set to fuel market fluctuations.

Among the notable events scheduled in the United States are the Consumer Price Index (CPI) on Tuesday, FOMC economic projections and Federal Funds Rates on Wednesday, and unemployment claims on Thursday. It is worth noting that these events have historically had a significant impact on the crypto market, especially in terms of overall volatility.

Regulatory Pressure and Bearish Outlook Loom

As more countries worldwide move toward regulating the nascent cryptocurrency industry, it is becoming increasingly evident that the crypto market will continue to exist for the long term. 

However, experts caution that the coming months could bring a more bearish outlook for the market as the SEC intensifies its regulatory crackdown. This intensified regulatory environment is expected to reduce crypto liquidity through the United States dollar, following Binance US’ recent decision to cease its dollar on/off-ramping services.

Crypto Market Resilience

Despite the recent SEC charges against Binance and Coinbase for operating unregistered securities exchanges, the crypto market has demonstrated its resilience in the past few days. Notably, the total crypto market capitalization has remained above $1.1 trillion. This shows that the market continues to make progress despite regulatory challenges and maintains investor confidence.

Focus on Binance and Coinbase

Currently, all eyes are on Binance and Coinbase as Binance urges SEC Chair Gary Gensler to recuse himself from the litigation due to an alleged conflict of interest. It has been reported that Gensler once applied for an informal advisor position at Binance following a meeting with Changpeng Zhao (CZ) in Japan back in 2019. 

This development adds an intriguing dimension to the ongoing legal proceedings between the SEC and the two major exchanges.