Tanya Abrosimova
Independent Analyst
Major cryptocurrencies are recovering from losses incurred on Wednesday. The digital assets market has moved into a green territory following the news that the largest American cryptocurrency exchange Coinbase is about to become SEC licensed broker-dealer. This status will allow the company to offer blockchain-based digital assets, thus drastically expanding the range of tradable instruments.
On Wednesday, the head of the US Securities and Exchange Commission (SEC) Jay Clayton said that the regulator would not adjust its rules and definitions to cryptocurrencies and confirmed that ICOs were considered as securities.
With that in mind, Coinbase announcement is considered as a big step forward in making digital assets market more legitimate and more mature.
"There are now many types of blockchain-based digital assets, from cryptocurrencies to security tokens to collectibles. In the United States, some of these assets will be subject to SEC oversight. With this in mind, securing these licenses will bring us a step closer to our goal, which is to be the most trusted way for our customers to buy, sell, and use many different types of crypto assets," the company commented in its official blog.
Since the beginning of the year startups raised over $9B via ICOs. That represents a huge business opportunity for Coinbase that now offer only a handful of the largest coins.
"Ultimately, we can envision a world where we may even work with regulators to tokenize existing types of securities, bringing to this space the benefits of cryptocurrency-based markets — like 24/7 trading, real-time settlement, and chain-of-title."
Market reaction
Bitcoin leaped to $7,747 before settling down at $7,725 as the news was met with enthusiasm and interpreted as a harbinger of institutional money flowing to the market. Ethereum is trading at $614, off Wednesday's low at $586; XRP is changing hands at $0.68.
BTC/USD, 30-min chart
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Zilliqa price poised for a rally on positive on-chain data; bullish technical indicators
Zilliqa price has broken above a falling wedge pattern, indicating a shift in market structure from bearish to bullish. Bullish divergence on the RSI and the Awesome Oscillator indicators signal a potential reversal and upward movement in ZIL price in the coming days.
MATIC sets for a rally as Polygon Foundation confirms the migration date
Polygon (MATIC) price has broken above a falling wedge pattern, indicating a shift in market structure from bearish to bullish. The Polygon Foundation officially announced on Thursday that September 4 is the migration date for MATIC to POL.
Top 10 crypto market movers as Bitcoin and Ethereum hold steady ahead of $1.8 billion options expiry
Bitcoin and Ethereum hold steady above $64,000 and $3,400 as $1.8 billion in options expire on Friday. WazirX hack of $230 million potentially linked to Lazarus Group ushers correction in Shiba Inu, among other assets.
Bitcoin Weekly Forecast: Will BTC continue its bullish momentum?
Bitcoin price increased by 5.5% this week until Friday after breaking above a descending trendline. Currently, it is trading slightly higher by 0.23% at $64,166. By Thursday of this week, U.S. spot Bitcoin ETFs observed cumulative positive inflows totaling $861.50 million.
Bitcoin: Will BTC continue its bullish momentum?
Bitcoin (BTC) price increased by 5.5% this week until Friday after breaking above a descending trendline. Currently, it is trading slightly higher by 0.23% at $64,166. By Thursday of this week, U.S. spot Bitcoin ETFs observed cumulative positive inflows totaling $861.50 million. On-chain data indicates oversold conditions for BTC, suggesting a possible market bottom.