Crypto
Coinbase Argues Token Buyers Don’t Acquire Any Rights
In a Wednesday (Jan. 17) court hearing, cryptocurrency exchange Coinbase Global made a comparison between buying cryptocurrency and collecting Beanie Babies.
The comparison was presented as part of Coinbase’s defense against a Securities and Exchange Commission (SEC) lawsuit accusing the company of selling unregistered securities, Bloomberg reported Wednesday.
William Savitt, a lawyer for Coinbase, argued that the tokens traded on the exchange should not be considered securities under SEC jurisdiction, according to the report. He emphasized that buyers of these tokens do not acquire any rights associated with their purchases, unlike traditional stocks or bonds.
“It’s the difference between buying Beanie Babies Inc. and buying Beanie Babies,” Savitt said, per the report.
The classification of digital tokens as securities has been a contentious issue in the courts, according to the report. In a similar case involving Ripple Labs’ XRP token, a Manhattan federal judge ruled that the token was not subject to SEC jurisdiction. However, in the SEC’s case against Terraform Labs, another judge reached the opposite conclusion.
Coinbase is urging the judge in its case to follow the Ripple decision and dismiss the SEC’s lawsuit, the report said. However, the judge adjourned the hearing without ruling, leaving the outcome uncertain.
Earlier in the trial, the judge asked if the SEC’s position might lead to the regulation of collectibles, according to the report.
The SEC contended that the tokens are different from a baseball card or other collectible because when buyers purchase these tokens, they are essentially investing in the underlying network, the report said. They argue that the tokens should be considered securities because buyers expect to derive profits from the efforts of others, aligning with the definition of a security according to a 1946 Supreme Court decision.
Savitt acknowledged Wednesday that buyers of digital assets on Coinbase may believe in the potential for value growth, but he argued that this belief alone should not classify the tokens as securities, per the report.
Beyond Coinbase, this case will likely have larger ramifications for the digital asset sector, as it could clarify the SEC’s role in regulating the industry.
Crypto
Strategy buys even more Bitcoin—$264 million of it—even as Bitcoin slumps to $87,000. | Fortune
Despite the current downturn for crypto, Strategy added even more Bitcoin to its collection. The company bought more than 2,900 Bitcoin last week, bringing its total to over 712,000, according to an X post by cofounder Michael Saylor. The move follows a more than $2 billion purchase earlier this month.
Strategy is the first and biggest digital asset treasury, or a type of company that acquires and holds on to large amounts of crypto. Saylor’s company began investing in Bitcoin in 2020 and now holds more than 3% of the total supply. This business model has confronted major challenges in the past few months, as the largest cryptocurrency has plummeted since its all-time high in October. Bitcoin is worth about $87,000, down about 31% since then, according to Binance.
One analyst views Saylor’s purchase as expected, considering the company’s business strategy, which is to continually amass Bitcoin on the theory it will appreciate in the long term, and to time purchases to coincide with market dips.
“It’s not surprising for me to see that they’re really aggressively continuing to purchase [Bitcoin]”, said Nathan Schmidt, an analyst at CFRA Research. “It is certainly the playbook for them these days.”
Bitcoin’s fall from its all-time high of about $126,000 in October was caused in part by a flash crash in the fall, where crypto traders lost more than $19 billion in their positions. Misfortunes for digital assets have only continued this calendar year. The sector dipped as tensions mounted between the U.S. and Europe over Greenland. In addition, major regulatory legislation, referred to as the Clarity Act, has stalled as major figures in the crypto industry spar over its details.
The major cryptocurrency isn’t the only one to suffer losses, as altcoins are down as well. Ethereum is down 30% in the last three months to its current price of $2,899, and Solana is down more than 38% to its price of about $124, according to Binance.
Crypto’s dip has led to disastrous returns for digital asset treasuries like Strategy. Saylor’s company stock is down about 64% since July to its current price of about $160.
Schmidt, the analyst from CFRA Research, argues that the biggest risk to Strategy is long-term declines in the value of Bitcoin. He says that the company could survive such a dip in the next few years because of its liquidity, but that over time the company would be in trouble.
The calls of a potential Bitcoin supercycle in 2026 intensified over the past week after former Binance CEO Changpeng ‘CZ’ Zhao — yet another prominent voice in crypto — laid out his predictions for the new year. However, a popular analyst on the social media platform X has released an opposing view, predicting a deep bottom for the BTC price this year.
BTC Price At Risk Of Further 65% Decline
In a January 25th post on the X platform, prominent crypto trader Ali Martinez said, in a sarcastic tone, that “the super cycle is super cycling.” In what seemed like a response to the buzz around CZ’s Bitcoin supercycle projection, the market pundit tempered the expectations with a $31,000 price bottom call for the premier cryptocurrency in 2026.
This bearish prediction is based on the appearance of price fractals on the BTC chart. For context, fractals are repeating patterns in price charts that can help map and project potential price movements for a particular cryptocurrency (Bitcoin, in this scenario).
As observed in the chart above, the price of BTC is currently following a similar movement pattern as in 2022. The premier cryptocurrency, after initially setting a then all-time high around $67,000 in early 2021, witnessed a nearly 55% correction to just above the $30,000 level by mid-July.
While the price of Bitcoin recovered and went back to set a record high of above $69,000 by the end of 2021, the market leader spent the majority of the following year in a downward trend. Exacerbated by the various bearish events of 2022, BTC ended the year at a low of around $15,500.
Martinez believes that the Bitcoin price is undergoing a similar movement pattern, having experienced an over 32% decline before climbing to the current all-time high of $126,080. The market pundit postulates that the premier cryptocurrency is currently witnessing the extended decline that saw its price reach $15,500 in 2022.
However, it is worth mentioning that the target this time around lies at $31,800, nearly 65% drop from the current price point. Hence, if the historical patterns highlighted by Martinez are to go by, there seems to be a higher likelihood of the Bitcoin price embarking on an extended downward trend rather than a supercycle.
Bitcoin Price At A Glance
As of this writing, the price of BTC stands at around $88,528, reflecting an over 1% decline in the past 24 hours.
Memorial ride for Alex Pretti planned by Minneapolis bike shop
2 die in Wayne County crash between semi and passenger vehicle
Cold weather Tuesday prompts more closures, opens warming centers in Pittsburgh
Anderson County victim flown to Augusta after bedroom fire
DC Water continues efforts to contain sewage, environmental group calls pipeline break ‘a catastrophe’ – WTOP News
Florida High School Football Rankings: Top 25 teams – Oct. 21
Cleary's 21 help Le Moyne down Central Connecticut State 69-64 in OT
How old is Bo Nix? What to know about Oregon quarterback ahead of 2024 NFL Draft
99th annual Pony Swim held in Virginia
Indiana Members Credit Union announced as new anchor tenant at Bottleworks District
The Hitchhiker’s Guide to why there may be a partial government shutdown Saturday
2026 World Economic Forum in Davos reflected global tensions
Driving Restrictions for Delaware Downgraded Effective 10am – State of Delaware News
Video: Minneapolis Nurses Mourn One of Their Own, Alex Pretti
The far-left network that helped put Alex Pretti in harm’s way, then made him a martyr
-
Sports1 week agoMiami’s Carson Beck turns heads with stunning admission about attending classes as college athlete
-
Illinois5 days agoIllinois school closings tomorrow: How to check if your school is closed due to extreme cold
-
Pittsburg, PA1 week agoSean McDermott Should Be Steelers Next Head Coach
-
Lifestyle1 week agoNick Fuentes & Andrew Tate Party to Kanye’s Banned ‘Heil Hitler’
-
Sports7 days agoMiami star throws punch at Indiana player after national championship loss
-
Pennsylvania16 hours agoRare ‘avalanche’ blocks Pennsylvania road during major snowstorm
-
Cleveland, OH1 week agoNortheast Ohio cities dealing with rock salt shortage during peak of winter season
-
Science1 week ago‘Largest outbreak that we’ve seen in California.’ Death cap mushrooms linked to deaths, hospitalizations