Crypto Market Update: US Representative Intends to Introduce Legislation to Fire SEC Chair Gary Gensler Amid Crypto Regulation Concerns

Written by Van - Perfected by ChatGPT

US Representative Warren Davidson has announced his intention to introduce legislation to fire Securities and Exchange Commission (SEC) Chair Gary Gensler. This comes after the SEC announced it would revisit the proposed redefinition of an “exchange,” potentially bringing additional regulatory scrutiny to certain brokers. Crypto advocacy groups warn the move could endanger participation in the space, and SEC commissioner Hester Peirce, known as “Crypto Mom” for her pro-crypto positions, criticized the latest move by the SEC in an April 14 statement. She claims the agency has been expanding its reach to solve problems that do not exist and refusing to alter current regulations to allow new technologies and new ways of doing business.

---

SEC to Take Action Against Crypto Exchange Bittrex Over Alleged Investor Protection Violations

Crypto exchange Bittrex is facing potential action from the US Securities and Exchange Commission (SEC) related to alleged violations related to investor protection. The SEC’s enforcement division is prepared to recommend a lawsuit against the exchange, which has already started winding down its US operations. Bittrex’s general counsel David Maria said the company had discussed how to register its operations with the SEC, but found no opportunity to comply with rules without ceasing all revenue-producing activities. Maria added the lack of regulatory clarity led to substantial costs and no certainty as to what can and cannot be offered. The SEC also called OMG Network (OMG), Dash (DASH), Algorand (ALGO), Monolith (TKN), NAGA (NGC), and IHT Real Estate Protocol (IHT) securities traded on Bittrex.

---

Bhutan’s National Investment Arm Accidentally Invests in Bitcoin and Cryptocurrencies

Bhutan’s national investment arm, Druk Holding & Investments, has been revealed to have secretly invested in Bitcoin and other cryptocurrencies, according to court records. The investment was made through bankrupt crypto lenders BlockFi and Celsius, and was accidentally disclosed in the aftermath of the crypto contagion that occurred last year. BlockFi has accused Druk of defaulting on a loan of $30 million and failing to return the funds, even after the lender liquidated collateral of 1,888 Bitcoin. If confirmed, this would be an unusual move for Druk, which is supposed to encourage domestic business projects.

---

Bitcoin Sees Fourth Week of Inflows as Investors Flock to Digital Assets Amid Challenges in Traditional Finance

According to CoinShares report, Bitcoin saw inflows of \(104 million, making up the majority of the \)114 million total inflows into digital asset investment products over the last week. This marks the fourth consecutive week of inflows in this sector. Coinshares attributes this trend to a flight to safety by investors who are worried about traditional finance challenges.

Source: CoinShares

Bitcoin’s price has dropped to \(29,348, its lowest level since April 10, causing long liquidations of almost \)29 million for April 17, with cross-crypto liquidations standing at nearly $67 million. However, many traders view this as a “buy-the-dip” opportunity. The U.S. dollar makes solid gains amid muted reactions in U.S. equities, with the U.S. Dollar Index above 102 after bouncing from its lowest levels in a year.

Investors should monitor four key dates identified by CryptoQuant - May 26, Aug. 7, Oct. 19 and Dec. 30, 2023 - in which the US government might sell its Bitcoin holdings, including those seized from the Silk Road dark web case. The government aims to offload approximately 41,500 more BTC in four batches throughout the year. The 73-day interval between the first batch sale and the next crucial date suggests a possible pattern in the government’s sell-off strategy. Investors should keep a watchful eye on these dates to better navigate the volatile cryptocurrency market.

---

Over $2 Billion Worth of ETH Withdrawn as Majority of Addresses are “In the Money”

Ether (ETH) withdrawals surpassed 1,056,951, worth approximately \(2.196 billion, today. However, selling has been minimal thus far, with many users restaking or reinvesting their ether instead of liquidating it for fiat currency or stablecoins. Some [addresses](https://twitter.com/lookonchain/status/1647833610576343040) withdrew and restaked over 34,000 ether, valued at over \)72 million at current prices. Ethereum’s price has hit a lull, with its value dropping to lows of $2,080 due in part to statements by the US Federal Reserve indicating a potential rate hike in the upcoming May policy rate meeting.

Source: Beaconcha.in

Meanwhile, IntoTheBlock chart shows more than 70% of addresses holding ether are in the money, having acquired coins at an average price lower than the cryptocurrency’s market rate. The focus now shifts to the \(2,365-\)2,430 price range, where many addresses have traded the cryptocurrency, according to Pedro Negron, a junior research analyst at IntoTheBlock. It happens as CoinShares notes that Ether inflows were only $300,000.

Source: IntoTheBlock

---

Aave Community Votes in Favor of Deploying Decentralized Exchange on zkSync Era Mainnet

The Aave community has overwhelmingly voted in favor of deploying the decentralized exchange on the zkSync Era Mainnet, limited to USDC and ETH. The proposal will now move to further discussion and risk parameter evaluation before being submitted for voting and approval via on-chain governance. The move to zkSync is expected to attract new users to decentralized finance while establishing Aave as a leading borrowing platform within the zero-knowledge ecosystem.

---

Injective Activates Fiat On-Ramps and Integrates with Kraken for INJ Trading

Injective, a decentralized finance platform, has activated multiple fiat on-ramp for its native cryptocurrency INJ, and has integrated its mainnet with Kraken exchange, providing access to liquidity. INJ’s mid-month surge in volume confirms higher demand, with a wave of retail demand coming in towards the end of the rally. However, the weighted sentiment metric, leaning towards a bearish expectation for the next few days, suggests a higher probability of a bearish outcome. The sale of INJ by top whale traders will dictate whether a notable pullback might be on the cards or not.

Source: Santiment

---

Tezos Set to Launch Nairobi Protocol Upgrade for Improved Transaction Speeds and Lower Gas Costs

Tezos is set to undergo a major upgrade called the Nairobi Protocol, which will improve transaction speeds and the gas cost model for manager operations’ signature verification. The protocol will also improve the Mempool module to enhance consensus validation and propagation. The upgrade is set to launch soon, and an upgrade to Octez v17.0 or later will be required to participate in consensus. Tezos’ total value locked has gained upward momentum in the last few days. XTZ still faces a correction along with the broader market with a -2.24% drop.

---

Kyber Network Advises Withdrawal of Funds from Elastic Product Due to Security Concerns

Kyber Network, a DeFi protocol, has advised liquidity providers to withdraw funds from its Elastic product following the discovery of a potential vulnerability. No funds have been lost, and investigations are ongoing. The KyberSwap Classic product is unaffected. The total value locked in the Elastic product has dropped from \(108 million to \)61 million. KNC has posted a -3.39% decrease in the past 24 hours.

---

SafeMoon Faces Criticism Over Lack of Transparency Following Hack That Caused Major Losses

SafeMoon’s latest post announcing new app builds has been criticized by the community for being a distraction from the hack that drained $9 million of liquidity from the protocol on March 28. Three weeks on, there has been no update on the circumstances of the attack or whether the funds can be recovered, leading to frustration among the community. Some have lost faith in the project, and peak-to-trough losses since the hack have amounted to 26%. The price of SFM dumped by -6% throughout the day.

---

Summary of Market Events and Price Action

As a summary of today’s events and price action in the market, it is crucial to note the following key points:

• Warning: More tokens defined as “securities” by the SEC
• BTC drops to the lowest point since April 10 in a correction
• ETH continues to see withdrawals amid tightened macro forces
• Aave’s proposal to launch on zkEVM passes “temperature check” vote
• INJ raises hope for further increases
• Tezos set to launch a major upgrade
• KNC drops as Kyber Network advises LPs to withdraw money
• SFM even falls deeper despite new update

Top Altcoin Gainers and Losers

Gainers:

Render Token RNDR (+13.84%)

Injective INJ (+11.50%)

Radix XRD (+9.14%)

Losers:

Kaspa KAS (-6.15%)

FTX Token FTT (-6.12%)

NEO NEO (-5.84%)

NFT Market Map

The Outlaws NFT collection, which features Western-themed artwork, has been criticized for similarities to artist Jeremy Booth’s work. The collection has sold out and is reportedly generating significant sales. The Outlaws creators claim to draw inspiration from various artists and offer a fresh take on the Western genre while honoring its cultural heritage. Booth stated that he is not connected to the project and took issue with how he was referenced in promotional content. He acknowledged its impact on him but plans to stay in the industry. The boundaries between plagiarism and inspiration in art are blurred, and the speculative nature of NFT projects can increase an artist’s sensitivity to resemblances in their work.