SEC Rejects Coinbase Requests for Cryptocurrency Rules: Chief Analysts Fear Negative Impact on Crypto Stocks.

SEC Rejects Coinbase Requests for Cryptocurrency Rules: Chief Analysts Fear Negative Impact on Crypto Stocks.

According to a report by www.deraktionaer.de,
The US crypto exchange operator Coinbase had already formally asked the US Securities and Exchange Commission (SEC) last year as part of a petition to begin developing comprehensive crypto rules. After a long period of reflection, the authority formulated a short response to this concern on Friday. It says “no”.

The SEC’s rejection of Coinbase’s application has significant implications for the crypto market. The regulatory uncertainty leads to negative price behavior of crypto stocks. The papers of companies such as Coinbase, Bitcoin mining companies and MicroStrategy are recording losses. The entire crypto market is also suffering and Bitcoin is also recording losses around the $41,000 mark.

The SEC's decision continues to burden crypto stocks with regulatory uncertainty and negatively impact the entire crypto market. The rejection of Coinbase's application results in a premarket loss of around 3.5 percent for Coinbase shares and around five percent for Bitcoin mining firms Marathon Digital and Riot Platforms.

It is important to note that uncertainty and regulatory pressure on the crypto market continues to cause consolidation. Bitcoin is also recording losses, which has a negative impact on the prices of crypto stocks. This highlights the critical role that regulatory decisions play in the pricing of crypto stocks.

Given this rejection, investors must consider the regulatory uncertainty surrounding the crypto market. Both fluctuating cryptocurrencies and crypto stocks will continue to be affected by regulatory decisions, which may result in volatile price movements.