In crypto, the drama never stops and regulators seemingly never sleep. Last week there were stock plunges, ratings downgrades and fresh warnings from the SEC, among other things.
Here are the two biggies to watch for this week:
Short sellers are lining up to take a chunk out of crypto bank Silvergate, with one notable, Marc Cohodes, predicting its demise within a week, The Block's Benjamin Robertson reports.
As such it may be another messy week for crypto banking.
Silvergate has taken a beating recently over its ties to FTX and Alameda Research. The institution shuttered one of its key money transfer platforms on Friday, the Silvergate Exchange Network, shortly after Moody’s downgraded its long-term issuer rating. What's more, shares are down about 95% over the past six months.
Crypto companies are pondering where to go next, with Swiss banks potentially looking like good options for some, according to Bloomberg.
Binance.US, Voyager and the SEC
Securities and Exchange Commission staff believe Binance.US is operating an unregistered securities exchange in the U.S., a lawyer said during a Voyager Digital bankruptcy hearing on Friday evening, as reported by our Stephanie Murray.
The comments come as the SEC ramps up its crypto enforcement activity, including settling with crypto exchange Kraken over its staking service and proposing tighter rules for crypto custodians. Representatives for Binance and Binance.US did not immediately comment.
It may be another week of narrative wrangling by heavyweight crypto businesses as they try to navigate these choppy regulatory waters.
The Voyager hearing is also set to spill into a third day, continuing on Monday in the U.S. Bankruptcy Court for the Southern District of New York.
© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.