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Crypto Market Surges On SEC Chair’s Testimony On Customer Fund Handling

Cryptocurrencies rise as SEC Chair expresses concerns over customer funds

Major cryptocurrencies experienced an uptick on Wednesday evening following a statement from the U.S. Securities and Exchange Commission Chair Gary Gensler. 

During his congressional testimony, Gensler maintained a confrontational approach towards crypto “hucksters.”

During testimony before the House Financial Services Committee, Gensler expressed his ongoing concerns about how cryptocurrency companies handle customer funds. He emphasized the problems that arise from commingling assets, stating that this approach “is a recipe that’s not led to good results.”

In his testimony, Gensler reiterated that Bitcoin is not a security, emphasizing that it does not meet the criteria outlined in the Howey Test, which is the widely accepted standard for determining securities.

Major cryptocurrencies experienced an uptick on Wednesday evening following a statement from the U.S. Securities and Exchange Commission Chair Gary Gensler.  PHOTO BY PIERRE BORTHIRY/UNSPLASH

“It does not meet the Howey Test, which is the law of the land for being a security. It’s not security.”

Currently, the global crypto market capitalization stands at $1.05 trillion, a 0.32% decrease in the last day.

The S&P 500 inched up by 0.02% to reach a closing level of 4,274.51, and the Nasdaq Composite saw a gain of 0.22% as it finished the session at 13,092.85.

Crypto analyst Michael Van de Poppe predicts that Bitcoin will soar and surpass crucial levels. He suggests that if Bitcoin reaches $26,500, it is highly probable to climb even further to $30,000 by October.

There we go, #Bitcoin is up and breaks above crucial areas.

I’d prefer to see $26,500 and, if we do, we’re likely to see $30,000 in October. pic.twitter.com/dKTJie3weF

— Michaël van de Poppe (@CryptoMichNL) September 27, 2023

Crypto Tony predicts an up-season will resume once Bitcoin drops down to $20,000. “We are not going to magically teleport with minimal liquidity in the market right now.”

Up season resumes once we tap $20,000 #Bitcoin 

We are not going to magically teleport with minimal liquidity in the market right now. Sorry legends, but being honest is the best policy

— Crypto Tony (@CryptoTony__) September 27, 2023

Analyst Benjamin Cowen observed that the current rally following the BTC death cross has mainly resulted in lower highs, a pattern that is typically seen. In this scenario, Cowen says, “The general idea is the BTC pumps into the death cross, finds a lower high, and the downtrend continues.”

Produced in association with Benzinga

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