Key ideas:
- The ongoing SEC cases against Ripple and Coinbase dominate cryptocurrency discussions and forecasts.
- Bitcoin mining achieves an important milestone: 50% clean energy use, highlighting environmental debates.
- FTX's decision to offload part of its $3.4 billion cryptocurrency reserve alarms investors, impacting cryptocurrency prices.
SEC Cases Against Ripple and Coinbase Take Center Stage in Crypto
Crypto experts, community members, investors, and the SEC await two pivotal court rulings.
While the SEC does not challenge Judge Torres' ruling on XRP and programmatic sales, a ruling for the SEC motion because the interlocutory appeal could create more confusion than clarity about the classifications of cryptocurrencies as commodities and securities.
However, Coinbase (CURRENCY) motion discard (MTD) will likely have material implications for the US digital asset landscape. CryptoLaw Founder and Amicus Curiae Attorney John E. Deaton suggests that a dismissal could force the SEC to resolve the SEC v Ripple case.
The rulings of presiding judges Torres and Failla could come at any time, leaving the cryptocurrency market in suspense.
Coinbase extended its winning streak to 4 weeks, albeit with a modest 0.07% increase to end the week at $82.15.
Franklin Templeton Joined the BTC-Spot ETF Race
The giant American fund manager Franklin Templeton joined the race to launch the first BTC-Spot ETF on Tuesday. With more than $1.4 trillion in assets under management, Franklin Templeton has named Bank of New York Mellon (bk) as custodian of cash holdings and Coinbase (CURRENCY) as custodian of btc holdings.
Franklin Templeton joined other heavyweight fund managers including Blackrock (BLACK), Fidelity and Invesco (IVZ), which applied for BTC spot ETF. Blackrock has more than $9 trillion in assets under management, and Fidelity and Invesco have assets under management of $4.5 trillion and $1.5 trillion, respectively.
BTC mining, clean energy and Elon Musk
BTC mining and the environment have caused intense scrutiny in recent years. US President Joe Biden's net-zero emissions ambitions by 2050 have likely fueled anti-crypto mining campaigns on Capitol Hill.
This week, news hit Bitcoin mining cables breaking the 50% clean energy threshold. The announcement was important for BTC and the broader crypto market community. First, increased use of clean energy should ease anti-cryptocurrency rhetoric from Capitol Hill. Second, Tesla (TSLA) can again accept BTC as payment.
In 2021, Elon Musk stated that Tesla would again accept BTC as payment once Bitcoin miners reached the 50% clean energy threshold.
Investors responded favorably to the news about Franklin Templeton and the mining threshold. During the current week, BTC is up 3.35% to $26,748.
FTX asset sale spooked investors
FTX continued to influence the broader crypto market on Monday. News emerged about FTX's cryptocurrency reserves of $3.4 billion and its plans to offload $200 million.
According to January 17 figures, FTX's holdings included $685 million in Solana (SUN), $268 million in bitcoin (BTC) and $90 million in ethereum (ETH).
BTC fell 2.54% on Monday as investors responded to the threat of a BTC dump on the market.
The FTX saga continues to make headlines, with Sam Bankman-Fried's bail revoked by the courts.
Stoner Cats, the SEC and more dissent in the ranks
On Wednesday, the SEC archived charges against Stoner Cats 2 LLC for allegedly offering unregistered cryptoasset securities in the form of non-fungible tokens (NFTs). According to the SEC charges, Stoner Cats 2 LLC allegedly raised $8 million to finance Stoner Cats, an animated web series.
SEC Commissioners Heter Peirce and Mark Uyeda dissented of the latest attack on the digital asset space. Stuart Alderoty, Chief Legal Officer at Ripple called The SEC performs a public relations stunt.
