More court victories for the cryptocurrency market and a clearer view on the regulatory environment for decentralized applications
Today's Cryptocurrenices analysis on behalf of Samer Hasn Market Analyst and part of the Research Team at XS.com
August 31, 2023 (Investorideas.com Newswire) Cryptocurrency prices are settling today, led by Bitcoin, which is trading near $27,250 levels, as well as Ethereum, which is settling at $1,700. While these levels are higher than what we had seen over the past week, in light of more positive developments in the judicial battles that are still clouding the cryptocurrency market.
In new judicial developments, a court in the United States dismissed a class action lawsuit filed by a number of investors against Uniswap Labs as a result of being a victim of fraud as a result of their purchase of fraudulent tokens created using the Uniswap protocol. While the dismissal of that lawsuit was based on the fact that these tokens, which are decentralized finance applications (DeFi), are commodities and are not subject to the laws of securities regulation or exchanges. The judge also noted that Uniswap Labs is not responsible for damages caused by a third party.
I believe that what happened in the case against Uniswap Labs could be the first steps in clarifying the legal and regulatory environment for DeFi applications and could make investors' concerns about sudden lawsuits and actions by regulators less and make them more predictable. On the other hand, this measure, and other similar possible measures, if taken in the future, may restrict investors' confidence in these applications due to the inability to regulate them and enforce the law on them.
Continuing to support DeFi applications, Robinhood has announced the availability of various token swaps based on the Ethereum blockchain.
This development comes after the very important legal victory achieved by Grayscale after it filed a lawsuit against the Securities and Exchange Commission (SEC) after it rejected the application to convert the Bitcoin Trust (GBTC) into a spot Bitcoins ETF, while the court said that the decision of the authority was not based on consistent justification. However, this judicial victory, which pushed Bitcoin to levels of $28,000, will not mean the launch of the long-awaited spot Bitcoin ETF, with more legal procedures and delays that the SEC may take, but it may enhance hopes of the possibility of launching those ETFs that have been applied for by several major US asset managers.
On the technical side, and on the 2-hour time frame, Bitcoin has support from the $27,109 level. The consolidation above that level may keep attention on the psychological level at 28000 as a next resistance level, with the return of momentum once again and the break of the prevailing sideways trend, followed by 28650 & 29137. But on the other hand, failure to consolidate above the 27109 level may shift sellers' attention to the 26581 levels, followed by the support area at the 25944-25809 levels.
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