BingX Insights

Get the latest blockchain news on BingX.

Next 24 Hours Will Be Critical For Crypto – Here’s Why

Jake Simmons 2023-06-13 14:00

The next 24 hours are extremely critical for the entire crypto industry for several reasons. Besides the macroeconomic events this week, they also have the potential to massively influence prices on the crypto market.

Today, Tuesday, June 13th, the US Securities and Exchange Commission (SEC) will take the center stage no less than four times. But perhaps the event with the greatest potential impact is the alleged unsealing of the SEC’s internal Hinman documents in the Ripple case.

The Hinman documents could shed light on Ethereum’s (ETH) previous classification as a non-security, which is now being challenged by SEC Chairman Gary Gensler. Right at the beginning of the legal dispute with Ripple, the SEC had already requested the Hinman documents to be declared invalid.

In June 2018, the then director of the SEC’s financial division, William Hinman, had declared in a speech that the cryptocurrency Ethereum was not to be considered a security. For Ripple, these documents are therefore of particular importance.

In its request, the SEC cites the need to protect the confidentiality of sensitive internal data. Furthermore, the SEC argues that the documents related to the Hinman speech are “not relevant” to the proceedings.

Ripple, however, sees it completely differently. Just yesterday, Ripple CEO Brad Garlinghouse wrote in a reply tweet:

Wish I could go in depth now, but we’ve waited this long (18+ months), I don’t want to overstep… suffice it to say @s_alderoty and I believe they were well worth the wait.

Remarkably, the Hinman documents could be of paramount importance not only to Ripple, but to the entire crypto industry. As Bitcoinist reported, they also have the potential to debunk the SEC’s claims in the Coinbase and Binance lawsuits if they contain statements about the classification of secondary market transactions of crypto assets.

A bullish reaction not only from XRP but among the altcoins that have been hit the hardest by the SEC’s Binance/ Coinbase lawsuits in recent days would be likely.

Other Key Events For Crypto On June 13th

Also of paramount importance will be the hearing on the SEC’s temporary restraining order (TRO) against Binance US at 2pm EST. The SEC last week asked a federal judge in Washington, D.C., to freeze the assets of Binance’s US subsidiary.

Binance US has since filed an opposition to the SEC’s request. The grounds state that the move would cripple the company’s business and harm its customers.

Binance US claims it has made “significant efforts” to cooperate with an SEC investigation since December 2020. The company also confirms that CEO Changpeng Zhao owns BAM Trading’s bank account, but claims he does not have signing authority for the account.

BinanceUS has brought in four lawyers from Milbank LLP, including a former co-director of the SEC’s enforcement division, George Canellos, as the troubled crypto platform prepares its defense.

Another major event: The US Securities and Exchange Commission (SEC) also has until today to respond to Coinbase’s petition for rulemaking. Four weeks ago, the SEC gave a first response, stating that any rulemaking may take years and that enforcement actions will continue in the meantime.

1. Hearing on motion to seize Binance assets in DDC; 2. Release of Hinman docs in SDNY; 3. SEC response to order on @Coinbase petition in 3rd Cir.

Not every federal court day is eventful in crypto, but tomorrow is. May God bless the US Courts.

— paulgrewal.eth (@iampaulgrewal) June 13, 2023

Last but not least, the public comment period for the SEC’s proposed expanded definition of an exchange also ends on Tuesday. The expanded definition could result in DEXs having to register as securities exchanges.

As Bill Hughes, attorney at ConsenSys writes, this is compelling evidence that new US legislation is urgently needed. This proposal puts the burden on the blockchain space to guess the rules correctly.

This means that anyone who guesses incorrectly – from software companies like ConsenSys to the software developers who use our products – could potentially face stiff penalties. “This also allows the SEC to determine whether a rule was broken after the fact – a form of retroactive punishment that due process forbids,” Hughes states.

At press time, the total crypto market cap stood at $1.027 trillion after falling below the crucial 200-day EMA on Saturday.

crypto market cap