US regulators’ first joint guidance on the application of securities laws to various types of crypto-tokens did not provide enough momentum to lift bitcoin the largest, over $75,000.
The interpretive guidance from the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), which does not carry the weight of a formal rule, classified crypto tokens into five different categories: digital commodities, digital collectibles, digital tools, stablecoins and digital securities, removing a major source of market uncertainty.
The ruling marks a shift from the existing case-by-case enforcement, which makes clear which tokens are considered securities and which are not, and is expected to provide issuers and exchanges with much-needed clarity on how different assets will be regulated under federal law.
“The practical effect is a more coherent and less burdensome regulatory environment. Legal uncertainty decreases, the risk of retroactive enforcement is reduced and compliance becomes more predictable,” said Tagus Capital.
“This supports institutional participation, exchange development and product innovation, while improving market structure through lower compliance costs and better price discovery. While the guidance stops short of binding legislation and still leaves room for case-by-case interpretation, it sets a strong template for future legislation and can accelerate global regulatory convergence.”
Still, bitcoin was unable to build on this month’s break from $65,000, which at one point on Tuesday saw the price approach $76,000. The cryptocurrency was largely unchanged over the past 24 hours.
Other major tokens such as XRP (XRP), ether (ETH) and solana (SOL) also saw choppy price movements, with the CoinDesk 20 Index falling 0.3%.
According to analysts, $75,000 is an important resistance level for bitcoin.
“On the upside, $75,400-$76,000 continues to act as resistance,” Vikram Subburaj, CEO of India-based crypto exchange Giottus, said in an email. “Bitcoin needs to hold above this range to signal stronger momentum.”
One possible reason for the reluctance could be the Federal Reserve’s interest rate decision due later Wednesday. The US Federal Reserve is generally expected to keep interest rates unchanged in the range of 3.5% to 3.75%. This leaves traders focused less on the decision and more on interest rate projections in the wake of the Iran war-related energy price shock.
The course decision, the policy statement and economic projections will hit the headlines at 2:00 PM ET followed by Chairman Jerome Powell’s press conference half an hour later.
