On August 29, Bitcoin surged to its highest levels in nearly two weeks, propelled by the news that digital asset management giant Grayscale had emerged victorious in a lawsuit against regulators in the United States. According to data captured by TradingView, the price of BTC witnessed an immediate and significant response to this development, with BTC/USD experiencing a rapid gain of $1,700 within a mere half-hour timeframe.
This development marked a significant disruption in the prevailing trading landscape for Bitcoin, which had been relatively stagnant since experiencing sudden losses in the middle of August. The turning point came in the form of a ruling handed down by the United States Court of Appeals for the District of Columbia Circuit. The court found that the U.S. Securities and Exchange Commission (SEC) had erred in its decision to reject Grayscale’s application to launch a Bitcoin exchange-traded fund (ETF) that would utilize the Bitcoin spot price as its foundational basis.
As an unverified copy of the ruling circulated online, it revealed that the court deemed the SEC’s denial of Grayscale’s proposal to be “arbitrary and capricious.” The reasoning provided was that the SEC had not adequately explained its divergent treatment of similar financial products. Consequently, the court granted Grayscale’s petition and nullified the previous order.
With this legal victory, Grayscale joins a growing list of firms vying to introduce the first spot Bitcoin ETF in the United States. However, it’s worth noting that the SEC has yet to greenlight any of these applications. As of the time of writing, the BTC/USD pair was trading around $27,300, having briefly touched a peak of $27,723 on the Bitstamp exchange.
Additional data from the Binance BTC/USD order book, as reported by monitoring resource Material Indicators, underscored the impact of this price surge. All order classes experienced heightened buying activity, particularly in a market environment characterized by limited liquidity. A six-month view of order book data pointed to a noteworthy scarcity of liquidity on the upside, potentially presenting an exploitable opportunity for a retest of price levels in the $30,000 range. However, Bitcoin analysts remained cautious, as the broader sentiment in the Bitcoin market was still apprehensive about the possibility of Bitcoin printing lower lows.
Elon Musk’s X secures license for crypto payments
In a related development Elon Musk, the visionary entrepreneur, has unveiled plans to transform X, formerly known as Twitter, into a versatile “everything app” featuring a diverse array of functionalities. Central to this transformation is the integration of a payment hub processor directly into the microblogging social platform, alongside a suite of tools hailing from the broader ecosystem.
Musk’s strategic vision involves creating a unified space where users can engage in various activities, all within the confines of X. Notably, his enthusiasm for the cryptocurrency Dogecoin (DOGE) is evident, as he has designated X as a “DOGE-friendly place,” alluding to a future where DOGE and potentially other cryptocurrencies could play an integral role within the app’s ecosystem.
However, the road to establishing X as a comprehensive payment hub and cryptocurrency-friendly platform in the United States involves a series of regulatory hurdles. Musk’s company has been diligently pursuing the necessary licenses to operate within legal frameworks across different states, with a notable focus on securing the “Money Transmitter License” for fiat payments.
An important milestone in this journey occurred on August 28 when Rhode Island granted approval for the requested license to Twitter Payments LLC, a branch of X dedicated to handling payments. The granted license, categorized as a “Currency Transmitter” license, encompasses an array of crypto-related services beyond mere payments. Among these are provisions for crypto exchanges, digital wallets, and payment processors, indicating a holistic approach to crypto integration.
This pivotal license empowers X to not only facilitate payments but also to store, transfer, and exchange digital assets on behalf of its user base. By expanding its offerings to encompass cryptocurrency-related functions, X aims to foster an ecosystem where users can seamlessly engage with digital currencies within the confines of the app. This evolution aligns with the broader trend of mainstream adoption of cryptocurrencies and their integration into everyday financial activities.