- The market is expected to recover completely from the mass sell-off
- Bitcoin is classified as a commodity, poised to benefit
The crypto market recovered on Tuesday and the tendency continues today, Wednesday, June 7. Coinmarketcap data show almost all top 20 coins gained value in the last 24 hours, with Bitcoin up 4.43% and Ethereum up 3.37% in the last 24 hours at the time of writing.
Hopefully, the market will recover completely from the mass sell-off triggered by the SEC’s lawsuits against Binance and Coinbase. Binance Coin has also recorded slight gains since the news broke.
SEC listed 67 cryptos as securities
The SEC listed Cardano, Solana, Binance Coin, and Polygon as unregistered securities, among others. The watchdog has now listed a total of 67 cryptos as such, accounting for a total of $100 billion of market value.
The Coindesk Market Index (CMI), which tracks the value of a collection of crypto, recently rose 4.5%.
Bitcoin is favored by regulator’s hardline stance
The US regulator notably avoided mentioning Bitcoin and Ethereum in its filings against the two leading crypto exchanges, which was some reassurance for investors that they are not seen as securities.
SEC’s chair Gary Gensler has taken the hardline stance in the past that “everything except Bitcoin is a security,” which means Bitcoin is poised to benefit from the developments.
Investors see crypto as a commodity
According to Vetle Lunde, senior crypto researcher at K33 Research, Bitcoin is classed as a commodity and its initial decline on the news of the Binance lawsuit was “an overreaction.” Bitcoin is not the only crypto that is behaving as a commodity.
Lunde said in an interview with CoinDesk:
Americans can purchase BTC through a plethora of exchanges, exchange-traded funds, payment apps, and more. Liquidity could consolidate further towards Coinbase and Kraken, but the market should not crash 5% on these developments.
As Bankless Times wrote on June 6, Binance and its CEO were slammed by the SEC with a lawsuit and accused of placing investor assets at significant risk. The Commission claimed the exchange commingled billions in customer funds and sent the money to a different company, which was controlled by its founder and CEO.
