KEYTAKEAWAYS
- AI-focused cryptocurrencies like Fetch.ai and SingularityNET saw gains as investors anticipated Nvidia's quarterly earnings report.
- SEC Chair Gary Gensler opposes new crypto laws, arguing existing regulations suffice, despite differing views from other federal agencies.
- The future of U.S. cryptocurrency regulation hinges on the ongoing legislative and judicial battles between the SEC, CFTC, and Treasury.
CONTENT
In the Crypto Pre-drink, we serve up a daily shot of the hottest crypto news and market insights to fuel your investment decisions.
AI-FOCUSED TOKENS SEE GAINS AHEAD OF NVIDIA EARNINGS
Artificial intelligence-focused cryptocurrencies experienced notable gains on Wednesday, defying the broader digital asset market’s downward trend as investors anticipated Nvidia’s quarterly earnings report. Major AI tokens, including Fetch.ai (FET), Render (RNDR), Bittensor (TAO), and SingularityNET (AGIX), increased by 4%-5% in the past 24 hours, according to CoinGecko data. This rally was led by AIOZ Network’s token, which jumped 7% after Nvidia listed the project on its Accelerated Applications Catalog.
NVIDIA’S EARNINGS REPORT DRIVES MARKET SENTIMENT
Nvidia’s anticipated earnings report has significantly influenced the AI crypto market. The chip-maker’s success and advancements in AI technology are seen as critical drivers for these tokens. Near Protocol (NEAR) also saw a 2% gain, becoming the best performing asset in the CoinDesk 20 index. Despite these gains, Nvidia’s shares dropped 1.5% just before the close of regular trading on Wednesday. Analysts, however, remain optimistic, predicting that Nvidia will exceed expectations.
GENSLER’S FIRM STAND AGAINST NEW CRYPTO LAWS
Securities and Exchange Commission (SEC) Chair Gary Gensler continues to assert that existing laws are sufficient to regulate the crypto market, opposing new legislative efforts. This stance is at odds with other regulatory bodies and the White House, which recently expressed eagerness to develop a comprehensive regulatory framework for digital assets. The Financial Innovation and Technology for the 21st Century Act (FIT21) is moving toward a vote, with significant support from House Democrats.
FEDERAL REGULATORY BODIES CLASH OVER CRYPTO POLICIES
The SEC’s position contrasts with the Commodity Futures Trading Commission (CFTC), which supports new legislation to address gaps in current regulations, especially for non-securities like bitcoin. CFTC Chairman Rostin Behnam has advocated for congressional action, stating his agency could establish a regulatory framework within a year if FIT21 passes. The Treasury Department, led by Secretary Janet Yellen, also emphasizes the need for new laws to regulate stablecoins and the crypto spot market.
LEGISLATIVE AND JUDICIAL BATTLE FOR CRYPTO REGULATION
As Congress and the courts race to define the regulatory landscape for digital assets, the SEC, CFTC, and Treasury remain at odds over the best approach. Gensler’s resistance to new legislation is supported by consumer-protection groups, while other agencies and lawmakers argue for a more defined and updated framework. The outcome of this debate will significantly shape the future of cryptocurrency regulation in the United States.
