By Senad Karaahmetovic
While investors are still digesting the fallout from yesterday’s events in the cryptocurrency market, some analysts are warning that the drama is unlikely to end any time soon. Cowen analysts said investors should watch the situation “closely” as the US government could step in to block the deal.
“We are already hearing concerns in Washington that the Committee on Foreign Investment in the United States (CFIUS) may seek to review it for national security reasons, with a focus on what it means for unity. distinct from FTX,” the analysts said in a note to client.
Analysts believe that the ongoing drama is hurting the entire cryptocurrency market from a US regulatory perspective. Congress could hold more hearings next year to determine whether global cryptocurrency exchanges threaten financial stability in the United States.
“It doesn’t matter that it’s global exchanges. It fuels the narrative that crypto companies are taking excessive risk without any oversight,” the analysts said.
The biggest winner may be the US Securities and Exchange Commission (SEC), as its chairman Gary Gensler has pushed for increased crypto regulation. It also makes it difficult for the SEC to approve the spot Bitcoin ETF.
“We expect him to now refer to FTX issues to prove his point. This means treating most tokens as securities and requiring exchanges to register as securities. scholarships.”
“We already had doubts that Congress could pass comprehensive cryptocurrency legislation next year. This controversy changes our perspective. bills like Lummis/Gillibrand. Yet it could open the door to bills that take a more onerous approach to regulation,” the Cowen analysts concluded.
At 04:15 a.m. EST (09:15 a.m. GMT), the price of the is down just over 2%.