U.S. authorities might block Binance-FTX deal on nationwide safety grounds – Cowen
By Senad Karaahmetovic
As traders are nonetheless digesting the implications of yesterday’s occasions within the cryptocurrency market, some analysts are warning that the drama doubtless gained’t finish anytime quickly. Cowen analyst Jaret Seiberg stated traders ought to watch the state of affairs “intently” because the U.S. authorities could intervene to dam the deal.
“We already are listening to issues in Washington that the Committee on Overseas Funding in the USA [CFIUS] might search to overview it on nationwide safety grounds with a deal with what it means for FTX’s separate U.S. unit,” Seiberg stated in a consumer be aware.
The analyst believes the continued drama is hurting the whole cryptocurrency market from the U.S. regulation perspective. The Congress could host extra hearings subsequent 12 months with the deal with whether or not international crypto exchanges are threatening monetary stability within the U.S.
“It doesn’t matter that these are international exchanges. It feeds the narrative that crypto firms are taking extreme dangers with no oversight,” Seiberg said.
The most important winner may very well be the U.S. Securities and Change Fee (SEC), given its Chair Gary Gensler has been pushing to extend the crypto regulation. It additionally makes it onerous for the SEC to approve the spot Bitcoin ETF.
“We count on he’ll now level to the troubles at FTX to additional show his level. Meaning treating most tokens like securities and requiring buying and selling platforms to register as exchanges.”
“We already had doubts if Congress subsequent 12 months might move complete crypto laws. This controversy adjustments our view. We consider it’s now much more difficult to move payments like Lummis/Gillibrand. But it might open the door for payments that take a extra onerous strategy to regulation,” the Cowen analyst concluded.
At 04:15 EST (09:15 GMT), worth is down simply over 2%.
