The recent announcement by the U.S. Securities and Exchange Commission (SEC) to cancel the securities registration of Salt Blockchain has impacted the cryptocurrency market.
Introduction
The Bitcoin price, which had risen to $57,000, suddenly changed due to the US data announcement. Sales accelerated, and BTC erased its gains in just two 15-minute candles after the SEC’s announcement.
SEC Decision
Salt Blockchain faced the SEC in 2020 and later resolved its issues with the institution. However, SEC recently announced that the registration of the company’s securities was canceled due to rule violations. Salt Blockchain is a Delaware company with securities registered under Section 12(g) of the Exchange Act. Since the end of 2021, the company has not submitted periodic reports to the SEC, violating Section 13(a) of the Exchange Act and Rules 13a-1 and 13a-13.
Consequences
The cancellation might not be the only reason for the decline. Expectations of a 50bps rate cut also suddenly reversed. During this period, no other statements or data from Fed members were observed.
The SEC’s announcement of Salt Blockchain's registration cancellation has had a significant impact on the market and could signal further regulatory changes.
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