Weekly Recap: Gary Gensler toughens stance on crypto, ZK coins rally, whales slow down BTC price rally
- Gary Gensler, chair of the US Securities and Exchange Commission hinted at tough times for the crypto industry.
- Zero knowledge narrative gained relevance with altcoin price rallies and Bitcoin’s recent pullback.
- Whales are taking profits in Bitcoin, slowing down the asset’s price rally.
US financial regulators toughened their stance on cryptocurrency exchanges and assets. Despite the regulatory crackdown, Layer 2 coins, Zero Knowledge (zk) coins witnessed price rallies.
Bitcoin’s price rally slowed down as large wallet investors engaged in profit taking.
Also read: Ethereum price gears up for rally ahead of ETH token unlock and “re-staking” narrative
US SEC crackdown on crypto intensifies
US SEC chair Gary Gensler intensified regulatory crackdown on virtual assets. In his testimony before the House Appropriations Subcommittee on Financial Service and General Government, Gensler called for new tools and expertise to tackle the misconduct in the crypto industry.
Gensler describes crypto as “the Wild West,” implying that it is rife with noncompliance and investors’ capital is at risk in the asset class. The US SEC received over 35,000 tips and complaints in FY 2022 and booked over 750 enforcement actions, despite limited resources.
Regulatory crackdown has intensified the pressure on cryptocurrencies and dampened sentiment among digital asset holders.
Read more: SEC Chair Gary Gensler’s latest call signals tough times ahead for crypto players
ZK coins narrative is heating up, key projects to watch out
Following the successful completion of Arbitrum’s ARB airdrop, Ethereum Layer 2 and ZK coins narrative garnered attention in the crypto community. Several projects like MATIC and IMX yielded gains for holders, while market participants were on the lookout for airdrops to farm.
Read more: Hottest ZK ecosystem coins and upcoming airdrops: ScrollZKP, LayerZero, Shardeum
Bitcoin price rally slowed down with whales engaging in profit taking
Bitcoin price climbed back above the $28,000 level before its recent pullback. According to on-chain metrics, there was a significant shift in whale activity with large wallet investors engaging in profit-taking and shedding their BTC holdings.
This is one of the key factors that likely slowed down the BTC price rally and paved the way for the alt season narrative to make a comeback in the crypto community.
Read more: Are whales slowing down the Bitcoin price rally: 73% of all BTC is profitable