Gate.io Blog Daily News | Markets Brace for US Inflation Data Release and SEC Crackdown on Stablecoins

Daily News | Markets Brace for US Inflation Data Release and SEC Crackdown on Stablecoins

14 February 09:51

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![](https://gimg2.gateimg.com/blog/166563293266894988220221013-114826.jpeg)

## Crypto <a href="/price/dai-dai" target="_blank" class="blog_inner_link">Dai</a>ly Digest: Global Markets Brace for US Inflation Data Release

Good morning traders! It’s CPI Tuesday. Watch out for volatility and let's make the most of this day! 🚀

Asia's shares are expected to increase due to the previous day's rally on Wall Street as investors prepare for the release of US inflation data. The anticipated acceleration of US inflation in January and a report of crude oil sales from the Strategic Petroleum Reserve has led to a drop in oil prices. However, an analyst from JP Morgan & Chase recommends investing in bonds instead of equities as there is currently no indication of an impending recession in the stock market.

The market will be searching for indications of whether the slowdown in inflation is slowing down or reversing. If the annual rate comes in at around 6% or lower, the data will likely be seen as bullish, which could offset some of the selling related to regulation. However, regulatory developments have a greater impact in the short term compared to macro factors, but macro factors will play a larger role in the long run.

The S&P 500 and Nasdaq 100 both increased due to a survey indicating a decrease in household income growth expectations. Meanwhile, the crypto market was impacted by the New York Department of Financial Services ordering Paxos to stop issuing BUSD, causing <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> to drop 1.95% before closing at -0.04%. Binance's <a href="/price/bnb-bnb" target="_blank" class="blog_inner_link">BNB</a> also experienced a 9.5% drop before recovering some losses and ending the day at -5.83%.

## Topic of the Day: SEC Steps Up Enforcement on Stabl<a href="/price/ecoin-ecoin" target="_blank" class="blog_inner_link">ecoin</a>s with Paxos in Crosshairs

The US Securities and Exchange Commission (SEC) has taken notice of Paxos, a crypto infrastructure provider, over its involvement with the <a href="/price/binance-usd-busd" target="_blank" class="blog_inner_link">Binance USD</a> stabl<a href="/price/ecoin-ecoin" target="_blank" class="blog_inner_link">ecoin</a>, alleging that it is an unregistered security. The New York Department of Financial Services has also issued a consumer alert and ordered Paxos to stop producing the BUSD stabl<a href="/price/ecoin-ecoin" target="_blank" class="blog_inner_link">Ecoin</a> due to several unresolved issues with its relationship with Binance.

The recent regulatory crackdown on stabl<a href="/price/ecoin-ecoin" target="_blank" class="blog_inner_link">ecoin</a>s by the U.S. Securities and Exchange Commission (SEC) implies that the regulatory body is taking a closer look at the crypto industry and stabl<a href="/price/ecoin-ecoin" target="_blank" class="blog_inner_link">ecoin</a>s in particular. The SEC's move against crypto infrastructure provider Paxos over its involvement in the <a href="/price/binance-usd-busd" target="_blank" class="blog_inner_link">Binance USD</a> stabl<a href="/price/ecoin-ecoin" target="_blank" class="blog_inner_link">ecoin</a>, alleging that it is an unregistered security, could indicate that the SEC is trying to enforce existing statutes, rules, and court decisions that apply to cryptocurrency.

The purpose of the crackdown may be to prevent potential financial stability risks that could result from the rapid growth of stabl<a href="/price/ecoin-ecoin" target="_blank" class="blog_inner_link">ecoin</a>s. The Financial Stability Oversight Council, a supercommittee of U.S. regulators, has included stabl<a href="/price/ecoin-ecoin" target="_blank" class="blog_inner_link">ecoin</a>s in a report on digital assets, warning that financial stability risks could result if stabl<a href="/price/ecoin-ecoin" target="_blank" class="blog_inner_link">ecoin</a>s grow without appropriate regulation.

By targeting Paxos, the SEC is also signaling to other stabl<a href="/price/ecoin-ecoin" target="_blank" class="blog_inner_link">ecoin</a> issuers that they could face similar scrutiny, and that it will take a closer look at stabl<a href="/price/ecoin-ecoin" target="_blank" class="blog_inner_link">ecoin</a>s and whether they comply with the regulatory framework. This could potentially help the SEC protect investors and ensure stability in the financial system. However, without adequate regulatory guidance and clarity, this increased crackdown could be challenging for crypto projects and the industry as a whole.

## Further Reading:
[Will 2023 Be the First Year of The Stablecoins?](/blog_detail/2126/will-2023-be-the-first-year-of-the-stablecoins "Will 2023 Be the First Year of The Stablecoins?")

## <a href="/price/bnb-bnb" target="_blank" class="blog_inner_link">BNB</a> (<a href="/price/bnb-bnb" target="_blank" class="blog_inner_link">BNB</a>) $291.51 (-0.97%) - Neutral Outlook

**Overview:**

- ***Closest <a href="/price/dai-dai" target="_blank" class="blog_inner_link">Dai</a>ly support zone: 292.45 - 287.24***
- ***Closest <a href="/price/dai-dai" target="_blank" class="blog_inner_link">Dai</a>ly resistance zone: 297.65 - 302.10***
- ***Key Level: 302.10 (Monthly Close of Feb. 2021)***

![](https://gimg2.gateimg.com/image/article/1676339462Untitled0214.png)

<a href="/price/bnb-bnb" target="_blank" class="blog_inner_link">BNB</a> saw a 9.5% drop before recovering some losses and ending the day at -5.83% on Monday. On Jan. 25, like most coins, <a href="/price/bnb-bnb" target="_blank" class="blog_inner_link">BNB</a> also broke above a descending trendline, although the candle was too weak to sustain an uptrend momentum in hindsight. The move up following the breakout did not reach a previous supply zone [349.09 - 397.98] and on Feb. 09, a bearish engulfing candle was spotted, implying there are now more sellers than buyers. Based on the volume profile indicator, <a href="/price/bnb-bnb" target="_blank" class="blog_inner_link">BNB</a> is currently experiencing a price struggle at the monthly level of 302.1 [Monthly Closing Price of Feb. 2021] with the winning side tilting to the bears. If <a href="/price/bnb-bnb" target="_blank" class="blog_inner_link">BNB</a> breaks below the trendline, it is likely it will find support above a previous demand zone [241.57 - 220]. On the contrary, if it rebounds from the trendline and closes above the monthly level, then it is likely it will retest the supply zone.

**<a href="/price/dai-dai" target="_blank" class="blog_inner_link">Dai</a>ly Resistance zones**

1. 297.65 - 302.10
2. 304.08 - 314.49
3. 323.54 - 332.03

**<a href="/price/dai-dai" target="_blank" class="blog_inner_link">Dai</a>ly Support zones**

1. 292.45 - 287.24
2. 279.84 - 270.40
3. 259.77 - 250.00

<div class="blog-details-info">
<div>Author:** Peter L.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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Topic of the Day: SEC Steps Up Enforcement on Stablecoins with Paxos in Crosshairs

Daily News | Markets Brace for US Inflation Data Release and SEC Crackdown on Stablecoins

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