Author: Faith Yakubu

The cryptocurrency market concluded the week with a downward trend, witnessing Bitcoin (BTC) slipping below $64,000 again, while altcoins also recorded losses amidst profit-taking activities by traders preparing for the next significant uptrend.

Similarly, stocks faced pressure after a Thursday rally pushed all three major indexes to new record highs, driven by expectations of lower interest rates. At the market close, the S&P and Dow finished in negative territory, down by 0.14% and 0.77%, respectively, while the Nasdaq managed to recover from losses, ending the day up by 0.16%.

Despite stock investors celebrating the new record highs, crypto investors took a subtle jab at the achievement. While Bitcoin has experienced a more than 13% decline from its recent peak, the S&P has only seen a roughly 0.5% downturn. It’s worth noting that since 2014, Bitcoin’s price has surged by over 29,000%, while the S&P has risen by 195%, with gold’s price witnessing an increase of 91.5% during the same period.

As of the time of writing, BTC is trading at $63,570, marking a 2.3% decline over the 24-hour chart.

Market analyst CryptoChiefs noted, “After Bitcoin continued to bleed throughout yesterday, we saw a nice reaction from the previous week’s Low at $64.6k,” suggesting the formation of an inverse head and shoulders pattern, with resistance seen around the Monday low at $65.6k.

Despite the drop in Bitcoin’s price, Poppe highlighted BlackRock’s consistent inflow in the Spot Bitcoin ETF, indicating continued institutional buying, which signals that the cycle is far from over.

Looking ahead, Rekt Capital outlined the Pre-Halving Retrace, setting up a future Post-Halving Re-Accumulation Range, paving the way for the future Parabolic Upside phase of the cycle.

In the altcoin market, DeXe (DEXE) led with a 21.9% gain, followed by DAO Maker (DAO) with a 16.2% increase, and Aptos (APT) with an 11.5% gain. Conversely, Echelon Prime (PRIME) dropped by 9.3%, while Raydium (RAY) and Flux (FLUX) declined by 8% and 7.7%, respectively.

The overall cryptocurrency market cap stands at $2.43 trillion, with Bitcoin’s dominance rate at 51.7%.

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Worldcoin, a project aimed at empowering users, is rolling out a new feature called “Personal Custody,” which eliminates the option for users to store their biometric data. Under this initiative, individuals signing up for a World ID will no longer have their biometric data stored and encrypted by default. Instead, the data will reside on users’ devices, giving them full control over its usage, including the option to delete it if desired.

The introduction of Personal Custody marks a significant step in Worldcoin’s commitment to privacy and transparency. While the project has always emphasized the protection of users’ biometric data during verification, this new approach aims to build further trust among potential users.

Tiago Sada, Head of Product, Engineering, and Design at Tools for Humanity, the primary software contributor to Worldcoin, emphasized the importance of user control over their data. He stated that while data deletion was previously the default option, the implementation of Personal Custody ensures that users have complete autonomy over their data, thus providing them with greater peace of mind.

Worldcoin’s recent move towards Personal Custody comes amid scrutiny from government agencies and regulators. Despite facing challenges, including a temporary ban in Spain and scrutiny over token distribution, Worldcoin remains committed to enhancing user privacy and security.

Before the rollout of Personal Custody, users had the option to either delete their biometric data immediately after verification or allow Worldcoin to encrypt and store it in secure data stores. With the elimination of the Data Custody option, Personal Custody puts data control firmly in the hands of users.

In addition to Personal Custody, Worldcoin is also increasing transparency by making key components of its Orb software publicly available on GitHub. This move aims to bolster transparency and verifiability, aligning with the project’s commitment to openness and accountability.

By prioritizing user empowerment and transparency, Worldcoin continues to advance its mission of providing a secure and inclusive platform for individuals worldwide.

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Gary Gensler, Chair of the Securities and Exchange Commission (SEC), reiterated his stance on the need for transparency in the crypto markets, suggesting they could benefit from some “disinfectant.”

Speaking at the Columbia Law School conference on Friday, Gensler emphasized the importance of disclosures in financial markets, including those related to climate and cyber risks. He argued that disclosures contribute to more efficient markets and safeguard investors’ interests.

In his prepared remarks, Gensler pointed out that some participants in crypto securities markets seek to evade registration requirements, resulting in a lack of mandatory disclosure. He suggested that introducing more transparency could improve the integrity of the crypto markets.

Gensler has consistently stressed that crypto firms must adhere to the same regulatory standards as traditional financial institutions. Over the past year, the SEC has taken action against platforms like Coinbase and Kraken for allegedly operating without proper registration.

The SEC’s recent focus on disclosures extends beyond crypto, with Gensler highlighting the importance of disclosures related to executive compensation, climate risks, and cyber risks. Earlier this month, the SEC voted to adopt rules requiring companies to disclose climate-related risks.

During a question and answer session, Gensler emphasized the role of both the SEC and the Commodity Futures Trading Commission (CFTC) in regulating crypto. He acknowledged that the agencies have different perspectives on whether certain cryptocurrencies, like ether, should be classified as securities or commodities.

While there appears to be some disagreement between the SEC and the CFTC regarding the classification of ether, Gensler and CFTC Chair Behnam maintain regular communication to ensure effective regulation. Behnam has stated that ether is a commodity, while the SEC’s stance on the matter remains less clear.

Behnam has also raised concerns that conflicting classifications could create compliance challenges for market participants. If the SEC were to classify ether as a security, it would potentially conflict with CFTC regulations, impacting registrants who list ether as a futures contract.

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WisdomTree has achieved regulatory clearance from the New York State Department of Financial Services (DFS) to operate its digital asset business in the state, placing it among a select group of entities approved in one of the United States’ most rigorous crypto regulatory environments.

The Bitcoin exchange-traded fund (ETF) issuer obtained a charter to function as a limited-purpose trust company under the New York Banking Law, as announced in a statement on March 22. This charter paves the way for the introduction of its WisdomTree Prime platform in the state.

With this charter, WisdomTree is authorized to engage in fiduciary custody of digital assets, including providing digital wallet services, facilitating stablecoin trading, and managing stablecoin reserves, subject to DFS oversight.

Jonathan Steinberg, WisdomTree’s Founder and CEO, underscored the significance of the license in enabling the firm to offer innovative products while prioritizing customer safeguarding. He emphasized that the New York State Department of Financial Services holds a leading position as a regulator for businesses involved in digital asset activities. Additionally, he highlighted the importance of the well-established trust company charter program, which existed before the emergence of digital assets. This program is founded on rigorous banking regulations, allowing the company to introduce innovative products while ensuring customer protection remains paramount.

New York boasts one of the most stringent crypto regulatory frameworks in the United States, necessitating registration and licensing for crypto-related entities. Over the past year, the state has taken legal action against several crypto platforms, including Gemini and the now-defunct Genesis crypto lender, for breaching local regulations.

WisdomTree Prime Platform

The regulatory approval also sets the stage for the rollout of the WisdomTree Prime platform, which will offer a suite of products within the WisdomTree Prime ecosystem, including the issuance of WisdomTree Gold and Dollar Tokens.

The mobile platform will provide users access to cryptocurrencies, digital gold, and various digital funds, creating an integrated ecosystem for saving, spending, and investing on-chain. Leveraging the firm’s trust charter and fiduciary powers will enhance customer protection, particularly regarding asset storage.

Will Peck, CEO of WisdomTree Digital Trust Company, expressed confidence in the company’s product lineup and responsible growth strategy.

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The US Securities and Exchange Commission (SEC) has intensified its examination of Ethereum, inadvertently rallying the cryptocurrency community against it.

Ripple CEO Brad Garlinghouse confidently stated that the SEC would ultimately lose its battle against Ethereum. In a post on March 22 on social media platform X (formerly Twitter), Garlinghouse highlighted that the financial watchdog failed in its classification attempt of his company’s XRP token and is likely to face a similar outcome in its efforts to classify ETH as security. He mentioned that the SEC is engaging in disputes with the industry and is experiencing significant losses in court battles. Additionally, they are currently in conflict with other regulators such as the CFTC, and are trailing behind international counterparts.

Echoing Garlinghouse’s sentiments, Ripple’s Chief Legal Officer Stuart Alderoty suggested that the US Congress should halt funding for this “insanity.”

SEC’s Investigation of Ethereum

Recent reports revealed that the SEC, led by Gary Gensler, is investigating entities associated with Ethereum, such as the Ethereum Foundation, in an attempt to classify ETH as a security. This move sparked significant backlash from both the crypto community and US legislators, who expressed concerns about the SEC’s aggressive stance toward the burgeoning industry.

Paul Grewal, Coinbase’s Chief Legal Officer, highlighted numerous instances where the SEC and its representatives have referred to Ethereum as a commodity. He pointed to statements from former high-ranking SEC official William Hinman, as well as congressional hearings and testimony from Gensler before his tenure as SEC chair, which indicated that the digital asset was not considered a security. Additionally, Grewal noted instances where SEC lawyers attempted to draw comparisons between ETH and BTC.

Community Sentiments and Ripple’s Support

Notably, Ripple executives’ endorsement of Ethereum comes as unexpected, given the historical friction between the XRP community and ETH. For years, XRP supporters have alleged that Ethereum received preferential treatment from the SEC due to its non-classification as a security by former SEC official Hinman, arguing that this contributed to Ethereum’s widespread adoption and subsequent development.

Moreover, past negative remarks about XRP from Ethereum co-founder Vitalik Buterin further fueled animosity between the two projects.

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