Crypto market weathers regulatory shifts amid growing European demand
Press Hub UCapital
Share:
Cryptocurrencies saw renewed volatility, highlighted by Bitcoin slipping 2.14% after the US Securities and Exchange Commission officially ended its investigation into Crypto.com without taking action. The exchange’s CEO, Kris Marszalek, claimed this probe was part of a broader effort to restrict the crypto industry’s growth by limiting access to banking, auditors, and investors. The SEC also dismissed its civil enforcement case against Cumberland DRW, signaling a pause in at least some of the regulator’s pursuits.
Market participants turned their attention to Paul Atkins, a former SEC commissioner nominated to lead the agency, who faced intense scrutiny at a Senate Banking Committee hearing. Senator Elizabeth Warren questioned Atkins’ past judgment and ties to the crypto industry through his consulting firm, Patomak Global Partners. Atkins confirmed he intends to sell his firm if appointed but did not specify who might purchase it, prompting concerns that the deal could represent a “pre-bribe” granting privileged access to the SEC’s future chair.
Meanwhile, a new survey by crypto investment platform Bitpanda revealed that fewer than one in five European financial institutions currently offer cryptocurrency services, despite more than 40% of business investors already holding digital assets and an additional 18% planning to invest soon. This indicates a gap between perceived and actual demand, as banks acknowledge crypto’s importance yet remain cautious about expanding their offerings. Even so, the study found that nearly a fifth of European banks intend to develop or broaden their crypto-related products in response to evolving market conditions.
In practical terms, these developments underscore the crypto market’s push and pull between regulators and investor interest. Although the SEC’s stance on high-profile exchanges has momentarily softened, ongoing scrutiny of key figures like Paul Atkins suggests that regulatory pressures are far from resolved. Across the Atlantic, the untapped demand for digital asset services may offer growth opportunities for forward-thinking European institutions. For now, traders and investors remain focused on the regulatory landscape, watching for signs that greater clarity—and potentially greater adoption—may lie on the horizon.
Market participants turned their attention to Paul Atkins, a former SEC commissioner nominated to lead the agency, who faced intense scrutiny at a Senate Banking Committee hearing. Senator Elizabeth Warren questioned Atkins’ past judgment and ties to the crypto industry through his consulting firm, Patomak Global Partners. Atkins confirmed he intends to sell his firm if appointed but did not specify who might purchase it, prompting concerns that the deal could represent a “pre-bribe” granting privileged access to the SEC’s future chair.
Meanwhile, a new survey by crypto investment platform Bitpanda revealed that fewer than one in five European financial institutions currently offer cryptocurrency services, despite more than 40% of business investors already holding digital assets and an additional 18% planning to invest soon. This indicates a gap between perceived and actual demand, as banks acknowledge crypto’s importance yet remain cautious about expanding their offerings. Even so, the study found that nearly a fifth of European banks intend to develop or broaden their crypto-related products in response to evolving market conditions.
In practical terms, these developments underscore the crypto market’s push and pull between regulators and investor interest. Although the SEC’s stance on high-profile exchanges has momentarily softened, ongoing scrutiny of key figures like Paul Atkins suggests that regulatory pressures are far from resolved. Across the Atlantic, the untapped demand for digital asset services may offer growth opportunities for forward-thinking European institutions. For now, traders and investors remain focused on the regulatory landscape, watching for signs that greater clarity—and potentially greater adoption—may lie on the horizon.