Crypto News Today: SEC Denies the Coinbase Petition for Rulemaking

Key Insights:

• BTC ended a three-day winning streak on Friday, falling 2.51%.
• SEC-Coinbase news affected buyer demand for BTC and the broader market.
• BTC-spot ETF updates and SEC actions are central themes for the Saturday session.

Bitcoin Gives Up the $42,000 Handle on SEC Maneuvers

Bitcoin (BTC) slid by 2.51% on Friday. After a 0.20% gain on Thursday, BTC ended the session at $41,958. In a relatively choppy session, BTC struck a Friday high of $43,109 and fell to a low of $41,711.

News of the SEC denying the Coinbase petition for rulemaking contributed to the session losses. Increased US lawmaker scrutiny of the digital asset space and BTC-spot ETF-related news also contributed to the session losses.

BTC Spot ETF-Related Updates

On Friday, news hit the wires of Blackrock (BLK) entering fourth-round talks with the SEC. Blackrock reportedly met with the SEC to discuss the iShares Bitcoin Trust application.

In-Kind/Cash creations and redemptions remained the focal point, with issuers pushing for In-Kind creations and redemptions. However, there were no presentations to signal the topic of discussion at the meeting.

Bloomberg Intelligence Analyst Eric Balchunas shared the news, saying,

“Nice find here: Gensler’s staff met with BlackRock yesterday to talk IBTC but it wasn’t normal crew, more public policy folks incl BlackRock’s Public Policy Director Ben Tecmire who btw used to be senior counsel at the SEC’s Division of Inv Mgmt.”

SEC Denies Coinbase Rulemaking Petition

On Friday, the SEC denied the Coinbase (COIN) rulemaking petition.

SEC Chair Gary Gensler expressed his support for the decision in a statement, saying,

“I was pleased to support the Commission’s decision for three reasons. First, existing laws and regulations apply to the crypto securities markets. Second, the SEC addresses the crypto securities markets through rulemaking as well. Third, it is important to maintain Commission discretion in setting its own rulemaking priorities.”

However, SEC Commissioners had differing views on the decision. SEC Commissioner Hester Peirce shared a joint statement with Commissioner Uyeda. The statement highlighted the need for more dialogue and information sharing to address issues raised in the petition. Commissioners Peirce and Uyeda concluded,

“While we are disappointed that the Commission is not hosting these important conversations, we will have an open ear for conversations that others host and the ideas that emerge from those conversations.”

US Politician and House Major Whip Tom Emmer also disagreed with the decision, saying,

“The SEC’s policy to provide LESS clarity to the marketplace instead of more is designed to create chaos and it will corrupt our great capital markets. It is wrong and a clear violation of the SEC’s mandate.”

Technical Analysis

Bitcoin Analysis

BTC held above the 50-day and 200-day EMAs, sending bullish price signals.

A BTC break above the $42,900 resistance level and the Wednesday high of $43,554 would support a move to the December high of $44,747.

The focal points remain BTC-spot ETF-related news and SEC activity.

However, a fall through the $41,585 support level would bring the $40,800 support level into play.

The 14-Daily RSI reading, 59.03, indicates a BTC move to the $44,000 handle before entering overbought territory.

Ethereum Analysis

ETH remained above the 50-day and 200-day EMAs, affirming bullish price signals.

An ETH break above the $2,300 resistance level would give the bulls a run at the December high of $2,403.

However, a drop below the $2,200 handle would bring the $2,143 support level into view.

The 14-period Daily RSI at 55.78 suggests an ETH return to the $2,403 high before entering overbought territory.