In 2025, banks across North America, Europe, and Asia will join forces with SWIFT to trial digital assets. SWIFT, the global financial messaging giant, announced plans to test how its network can unify access to multiple digital currencies and asset classes. These trials will focus on integrating digital assets like cryptocurrencies into global finance by facilitating seamless transactions alongside traditional currencies.
The trials will explore various use cases such as payments, foreign exchange, securities, and trade. SWIFT’s objective is to provide financial institutions with the ability to transact using multiple digital currencies in a streamlined way. These trials represent a significant step toward bridging the gap between digital assets and traditional banking, as banks look for ways to adapt to the evolving financial landscape.
SWIFT emphasised the growing fragmentation within the digital asset world, where multiple platforms are developing in isolation. This has led to what SWIFT calls “digital islands,” which hinder the widespread adoption of digital assets. Through its trials, SWIFT aims to connect these fragmented networks with each other and existing fiat currencies, making it easier for global financial institutions to operate using both digital and traditional forms of value.
The digital assets that are to be used in the trial are yet to be disclosed but it’s something there will be plenty of anticipation around.
SEC Files Appeal Against SEC
Just when we thought it was all over, the SEC strikes again, filing a notice to appeal its ongoing lawsuit against Ripple Labs, contesting the favourable aspects of a July 2023 court decision. In that ruling, Judge Analisa Torres concluded that Ripple’s XRP token was not classified as a security for sales to the public but was considered a security when sold to institutional investors. The SEC aims to challenge the part of the ruling that deemed secondary sales exempt from securities regulations, signalling its broader concern about cryptocurrency regulation.
This appeal is pivotal because it comes after the crypto community had celebrated the court’s initial ruling as a significant win for digital assets. By appealing, the SEC seeks to reinforce its stance on regulating cryptocurrencies as securities under specific circumstances. Industry stakeholders are closely watching the case, as its final outcome could influence future regulatory frameworks for crypto assets. Ripple lost over 3% of value as a result of the appeal.
Additionally, the SEC’s appeal coincided with news that Gurbir Grewal, the SEC’s Enforcement Division Director, announced his resignation. His departure adds to the growing complexity surrounding the SEC’s approach to enforcement actions within the crypto space.
The Ripple case has broad implications for how cryptocurrency will be regulated moving forward. A decision favouring the SEC could lead to stricter controls over crypto transactions, while a Ripple victory might provide more regulatory clarity and freedom for digital asset companies.
Bitcoin Reacts Negatively at $66,000
It’s a classic “make or break” moment. Over the past weeks, Bitcoin has been back-testing previous highs, but the highly anticipated breakout has yet to materialise. With the market still in flux and traders anxiously awaiting clear signals, this retest has left many wondering if a larger move is on the horizon – or if the next phase of volatility will bring a sharp pullback.
The current price action is an important retest of Bitcoin’s previous highs, a key level that was expected to either serve as a launchpad for the next leg upward or signal a reversal. Historically, when Bitcoin reapproaches these levels, it often foreshadows significant market moves. However, this time, the bulls haven’t managed to push BTC beyond the resistance convincingly. A lack of volume and momentum has caused hesitation among investors, leading to uncertainty about the next phase of Bitcoin’s price action.
As we enter October, we find ourselves in a unique position. Traditionally, September is not kind to Bitcoin, often marked by low volume and volatility as market participants remain cautious.
October, often dubbed ‘Uptober’ by Bitcoin bulls due to its historically positive performance, presents a contrast. With many macroeconomic factors in play and the market consolidating in an expanding wedge pattern, our strategy is to remain patient and composed.
At present, Bitcoin is trading within an expanding wedge, a pattern that hints at growing volatility. While this can sometimes signal an impending breakout, it also comes with the risk of a breakdown.
Looking beyond the immediate technical levels, we’re also eyeing the broader runway leading up to the U.S. elections. Historically, election cycles tend to bring heightened volatility to both traditional and crypto markets, as uncertainty around policies and economic direction affects investor sentiment. With the election runway approaching, we anticipate that the next few months could see a more pronounced move in Bitcoin’s price as political and economic narratives unfold.
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