Close this search box.

A couple big cryptocurrency stories to look out for this week

A couple big cryptocurrency stories to look out for this week

On Tuesday, the United States will announce inflation data, which market investors will eagerly monitor.

Following last week’s lawsuit against Kraken, the SEC has placed crypto businesses on high alert about staking products. 

On Tuesday, inflation data will give information on the health of the U.S. economy, and regulators may also be in the limelight this week. Here are some things to keep an eye out for:

U.S. inflation data

Following a week dominated by regulatory moves, investors will now turn their attention to Tuesday’s US CPI data. 

On Tuesday, January inflation figures will be revealed at 8:30 a.m. EST. Analysts expect the headline figure to rise to 6.2% year on year, down from 6.5% in December. The December figures boosted both cryptocurrency and traditional stock markets. 

Nonetheless, month-on-month inflation is predicted to be 0.4% higher, and the Federal Reserve will undoubtedly be watching the announcement attentively. 

Higher-than-expected inflation data may prompt the Fed to keep raising interest rates. Higher interest rates can be detrimental to crypto because the asset class behaves like a risk asset, which is vulnerable to rate increases. 

Annual adjustments from the Bureau of Labor Statistics released on Friday revealed that inflation over the last few months was slightly higher than originally recorded. In December, the inflation rate was revised from -0.1% to 0.1%. The 0.2% increase in November was revised from the 0.1% previously reported.

Regulatory clampdown?

With its action against Kraken last week, the Securities and Exchange Commission issued a “warning” to cryptocurrency firms. 

When selling services such as loaning or staking, crypto intermediaries must give “appropriate disclosures and precautions required by our securities rules,” according to the regulator. Kraken later agreed to pay $30 million to discontinue its on-chain staking services for U.S. clients. 

Those other platforms should take note of this and endeavor to comply,” CEO Gary Gensler said on Friday. 

Coinbase’s Chief Legal Officer, Paul Grewal, stated that the company’s staking offering should not be prohibited. Grewal explained why in a blog post published on Friday. As it did last week, the SEC’s next move might have far-reaching consequences for crypto companies and markets.

Share to Social Media

Leave a Comment

Your email address will not be published. Required fields are marked *

Recent Articles

Join Our Newsletter