Weekly Update: 21st of March
What happened between the 14th and 21st of March?
- Digital assets advocate Paul Atkins closes in on SEC Chair amid setbacks as his Senate hearing is set for March 27. Read more
- Bitcoin ETFs post largest daily inflows in six weeks, securing five trading days of net inflows. Read more
- According to Ripple Labs, the Securities and Exchange Commission has dropped its appeal against the organization, potentially ending the tedious legal battle. Read more
New SEC Chair potentially on the horizon
On December 4th , 2024, President Donald Trump announced his new SEC Chair nominee Paul Atkins, a known pro-digital assets advocate, however, his journey hasn’t been smooth sailing. His recent marriage into a billionaire family has reportedly caused headaches with financial disclosures — delaying his potential start date.
Nevertheless, Atkins is stepping closer to the Chair position as his Senate committee hearing is reportedly set for March 27. If appointed, the market may finally gain clarity on the agency’s stance toward digital assets and whether it is truly entering an era of more crypto-friendly policies.
Bitcoin ETFs turn green again
Since early February, Bitcoin and the broader altcoin market have been in a downward trend, coinciding with net outflows from Bitcoin spot ETFs—indicating reduced interest from institutional and professional investors. During this period, these financial instruments saw at most two days of inflows, followed by several days of strong outflows.
However, this trend appears to have shifted. Since March 14th, Bitcoin ETFs have recorded five consecutive days of net inflows, suggesting renewed investor interest in Bitcoin and potentially signaling a reversal of the market’s downward trajectory.
Ripple lawsuit potentially comes to an end
On March 19th, Ripple Labs announced that the SEC had dropped its appeal, potentially limiting the agency’s ability to regulate the digital assets market. The SEC had initially challenged a July 2023 ruling, which determined that the sale of XRP tokens on public exchanges did not meet the legal definition of a security.
However, the court did rule that XRP sales to institutional investors should have complied with securities laws, resulting in a $125 million penalty for Ripple Labs. Where the SEC has appealed the decision against the ruling that selling on public exchanges don’t constitute as securities, Ripple has appealed the decision that its institutional sales breached security laws, the latter appeal remains ongoing.
Since Trump took office, the SEC has scaled back its enforcement efforts in the digital assets space, settling lawsuits with major exchanges like Coinbase and Kraken. The abrupt decision to end its appeal against Ripple could signal a shift toward a more crypto-friendly regulatory environment.
In other digital assets news
- Telegram founder Pavel Durov released from France, causing the TON token to surge over 15%.
- Strategy, formerly known as MicroStrategy, has again acquired Bitcoin but it’s the smallest acquisition so far, buying 130 Bitcoin for around $10.7 million.
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