This Week's Crypto Update: The SEC, The Federal Reserve, and Senator Warren

Highlights

• The cryptocurrency market is set to conclude an eight-week period of gains.
• There is ongoing discussion about Senator Elizabeth Warren and the SEC.
• The SEC has rejected Coinbase's request for regulatory rulemaking.

The cryptocurrency market is set to conclude an eight-week period of gains, with the total market cap dropping 3.22% to $1,551 billion for the week ending December 17. Failure to recover from these losses by the weekend could result in the end of the winning streak.

A widespread sell-off in the cryptocurrency market on Monday led to a 5.12% decrease in the total market cap to $1,521 billion. Notably, bitcoin (BTC) dropped from its 2023 high of $44,747 to a weekly low of $40,211.

The decline is attributed to increased regulatory scrutiny by lawmakers, particularly from the SEC and the Federal Reserve, as well as the lack of progress in establishing a BTC-spot ETF market.

Midweek relief was provided by the US Federal Reserve, which kept interest rates unchanged at 5.50% in line with expectations. Additionally, the Fed's projections, indicating a softer landing and a more dovish Fed Funds Rate Trajectory, boosted demand for riskier assets.

Senator Elizabeth Warren and her stance against cryptocurrencies were a major focus during the week. She garnered support for the Digital Asset Anti-Money Laundering Act, which received backing from additional senators, including three Banking Committee members.

Progress toward a BTC-spot ETF market faced obstacles from the SEC regarding In-Kind Creates, pushing issuers to revise their applications to Cash Creates. Despite efforts by various issuers, including Blackrock and Fidelity, the SEC appears unwavering in its stance on this matter.