Earlier this month, SEC Chairman Garry Gensler said the U.S. lacks a “regulatory framework” for crypto exchanges which currently don’t have “protection against fraud or manipulation.” The remarks preceded an SEC staff statement that described BTC markets as unregulated and having the potential for “fraud or manipulation.”
Last week, Bloomberg reported that Binance is under investigation by the U.S. Justice Department and IRS. The legal uncertainty faced by Binance is most concerning for alt-coins, for which Binance has emerged as an essential marketplace.
Binance is under investigation by the U.S. Justice Department and IRS, according to Bloomberg. The outlet previously reported in March that Binance was being investigated by the CFTC over allegations that it allowed U.S. residents to trade derivatives that violated local rules.
Yesterday, Elon Musk tweeted that Tesla would stop accepting BTC as payment due to concerns over the carbon costs of transactions. The apparent U-turn comes 3 months after Tesla announced it had purchased USD 1.5 billion-worth of BTC and that it would accept the coin as payment., the firm behind the EOS network and asset, has announced plans to launch a new cryptocurrency exchange in 2021. The new venue, called Bullish Global, will seek to combine elements of centralized and decentralized exchanges. EOS has rallied about 40% on the news.
Over the weekend, a Reuters article on Ethereum made reference to the network’s scaling challenges, while research firm Bernstein highlighted “execution risk” related to upgrades in a May research report.
Historically, drops in BTC dominance have preceded weakness in crypto markets. In 2017, when BTC made record highs, the coin’s dominance was about 60%. Several weeks later when ETH made record highs, BTC dominance had fallen to roughly 35% and BTC’s price to around USD 14,000. 
Ethereum Classic (ETC) added roughly USD 8.6 billion to its market cap over the past week. The move is despite major technical issues faced by the network over the past year that’s typical of recent alt-coin action with little fundamental justification.
Crypto mining firm Marathon Digital Holdings has launched a mining pool it claims will be fully compliant by only processing transactions that “meet U.S. regulatory standards.” We review what the application of such compliance measures could mean for BTC.
Ethereum has achieved new all-time highs of about USD 3,400. The move coincides with recent endorsements of ETH that tend to overlook mid-term technical uncertainty for the network.