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BofA Says Crypto Sentiment Remains Poor

The value of tokens continues to be in the zone of the negative impact of the consequences of recent measures that were introduced by regulators in relation to the sphere of cryptocurrencies.

BofA Says Crypto Sentiment Remains Poor

The relevant information is contained in a Bank of America study. This study indicates that the situation of uncertainty arose due to a lawsuit by the U.S. Securities and Exchange Commission (SEC). The regulator sued Binance, its founder Changpeng Zhao and the Binance operating company due to allegations of violation of federal securities laws.

The commission also filed a lawsuit against the Coinbase crypto exchange. In this case, the same charges became the reason for going to court, but statements about carrying out activities without the necessary registration were added to them.

The regulator also accuses Zhao of misleading investors and being involved in the misuse of their funds. The crypto exchange stated that these accusations are disappointing and said about its intention to defend its rights and interests in court.

Over the weekend, the SEC announced that Binance and two affiliates had agreed to retain assets held for Binance.USA clients.

Gurbir S. Grewal, director of the Law Enforcement Department of the commission, said that due to the fact that Zhao and the crypto exchange founded by him can combine and redirect consumer assets, supervision by the regulator is necessary to protect investors’ funds.

Researchers say that the rapid development and integration of the infrastructure of distributed registries and blockchain technologies face obstacles, the root cause of which is excessive attention to the actions of regulators, to the approval of bitcoin exchange-traded funds (ETFs) in the US, and to illegal practices.

The study separately notes that privately authorized distributed ledgers and blockchain subnets allow the tokenization of traditional assets.

Bank of America, taking into account the factor of unfavorable external influence, predicts that over the next five to ten years, a blockchain infrastructure and tokenization will transform financial and non-financial management and communication systems.

Last week it became known that the bitcoin offer on crypto exchanges reached a five-year low. This state of affairs is the result of uncertainty caused by the actions of the SEC in relation to the largest digital currency exchanges.

The market intelligence Sentiment platform posted a message on Twitter stating that the current unfavorable trend will continue until the completion of the proceedings on the fact of lawsuits against Binance and Coinbase.

As we have reported earlier, Binance Cancels UK Registration.

 

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.