The SEC advised Coinbase to halt trading in altcoins

Overnight, multiple news media reported that according to Brian Armstrong, Coinbase's CEO, the Security Exchange Commission (SEC) advised the platform to halt trading in all cryptocurrencies except for Bitcoin before initiating a lawsuit against the company. The lawsuit, filed last month, accuses Coinbase of failing to comply with the current regulation that requires it to register as a broker in order to facilitate the trading of securities. The SEC’s decision to file a lawsuit against the second-largest cryptocurrency exchange in the world could potentially set a precedent with far-reaching effects on the broader crypto market. Imposing a restriction on Coinbase to offer only Bitcoin could significantly shrink the investment and trading options available to its vast user base. Furthermore, it would probably result in massive sell-offs and a general state of market turbulence. While this large crypto crackdown would likely prove destructive to many altcoins, Bitcoin could benefit from it in the long term. Therefore, this case is something that we will very closely monitor going forward.

Illustration 1.01
Illustration 1.01 displays the daily chart of BTCUSD and two simple moving averages. If the 20-day SMA crosses below the 50-day SMA, it will be a bearish signal.

Technical analysis gauge
Daily time frame = Bearish
Weekly time frame = Slightly bearish
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of RSI, MACD, Stochastic, DM+-, ADX, and moving averages.

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DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.