Good morning. Here’s what’s happening:

Prices. Bitcoin’s prices recover as blockchain congestion eases. Callie Cox, eToro’s Callie Cox, said that bitcoin’s resistance is a concern for crypto traders.

Insights The issue of extraterritoriality has once again been at the forefront of a crypto-court case. Were we able to get answers about how far the U.S. government can go?


Bitcoin showing green shoots as congestion begins to clear

Good morning Asia.

As Asia opened, the first signs that the price of bitcoin is returning to growth were evident. This was due to the decreasing congestion on the blockchain.

According to CoinDesk’s market data Bitcoin is currently trading for $27,741, up 0.3%. Ether is currently trading for $1,853 up 0.2%.

On chain data shows the number of unconfirmed transaction had dropped to below 400,000 on Wednesday morning Asia time from nearly 500,000 at the weekend. fees to send transactions have dropped from more than 20 at the height of this crisis.

What will be the next big price move?

Callie Cox, eToro’s investment analyst, says that inflation is the main concern of everyone from the Fed and crypto traders to the Fed.

Cox, in a recent interview with CoinDesk TV argued that Americans wanted inflation to decline while maintaining job safety, and that the Fed was trying to balance this, but that it is a process which inevitably includes some pain.

Cox, speaking on CoinDesk TV, said that Powell “really leaned in to his megaphone” and used some very flexible words about the future of policies. “They are constantly dropping hints, and making statements that change the language if they need to make future policy changes. This could be an indication that the Fed has become more flexible.

Despite its congestion, Bitcoin remains a defensive investment, she said, pointing out that, on many CPI and Fed Days, it outperformed S&P 500.

She said that, “In the aftermath of massive sell-offs Bitcoin, although still risky, appears to benefit from its traditional role as well as its emerging role in a value storage during lower rates.”

What is Cox interested in at the moment, besides bitcoin? Ethereum.

She considers ether a more risky investment but is aware of its economic value as well as the growing number of Ethereum-based projects.

She said, “I think investors are recognizing that Ethereum is one of the blockchains that has proven its value in recent times.”

The Biggest Gainers

Biggest Losers

Former FTX CEO Sam Bankman-Fried has begun his defense.

Bankman-Fried filed a court document yesterday that moved to dismiss most of the charges brought against him.

Extraterritoriality is one of the strategies used by his legal team to discredit allegations of commodities fraud.

The legal team of Bankman-Fried argues, in a document filed with the court, that the commodities fraud allegations would require an extraterritorial applicability of the Commodities Act Act (CEA), and this is not permitted as the CEA applies only to domestic conduct.

Further, they argue that previous case law dictates the CEA’s focus is not on the geographic location of transactions but on preventing market manipulation and ensuring integrity.

Remember that FTX didn’t serve U.S. clients, and, as the lawyers note in their filing, it was based first in Hong Kong, before moving to The Bahamas.

What is the U.S. Nexus?

BitMEX has been on this path before.

BitMEX has been charged with violating U.S. money laundering laws, despite the fact that it does not serve U.S. clients nor operate bank accounts in U.S. institutions.

Braden Perry was a former Commodity Futures Trading Commission attorney who is now a partner with Kennyhertz Perry . This is dangerous territory.

Unfortunately, those who are interested in learning more about the CFTC’s international mandate will not be able to see this case in full because of a plea agreement that Arthur Hayes, and Ben Delo took.

The case, if it went to court, would have raised new questions regarding the Bank Secrecy Act and its applicability for entities that do not accept fiat currencies or have limited ties with the United States. It also raised concerns about regulatory overreach and jurisdiction.

Hayes’ and Delo’s settlement included a fine of a significant amount, as well as supervised house arrest and probation in the case of Delo.

Bankman-Fried is unlikely to choose this option. He has more motivation to fight for his case.

This will hopefully mean that the extraterritorial attitudes of U.S. regulatory agencies are tested in court, and their case law is established. It would be a relief to the industry to know where the U.S. is able and unable reach instead of constantly guessing.


Important events.


CoinDesk TV

If you haven’t seen it yet, here’s the latest episode of “First Mover” on CoinDesk TV.

Bittrex, a crypto exchange in the United States state of Delaware, filed for bankruptcy on Monday. This came months after it announced that it would cease operations in the U.S. and weeks after the Securities and Exchange Commission sued the company. Bitcoin (BTC), which was trading below $28,000, filed for bankruptcy on Monday. Callie Cox, eToro’s U.S. Investment analyst, provided her analysis of the crypto markets. Sam MacPherson, co-founder of Phoenix Labs and CEO of the company, also discussed MakerDAO Spark Protocol which launched today. Tiago Saa, Tools for Humanity’s head of product and Navin Gupta from Ripple South Asia & MENA, joined the discussion.

Bitcoin fees surge amid BRC-20 frenzy, causing Litecoin transactions to reach a record high The transaction fees for Bitcoin have reached a two-year-high due to the increasing popularity of BRC-20 tokens.

Coinbase Fixes Wallet Support for Ethereum staking Withdrawals Stuck In Limbo : Coinbase customer support states that “Our systems do not currently support deposits from external validators to Coinbase ETH address… Funds could be stuck until we can support these transactions.”

Bitcoin Fees Are Not High According to Nic Carter, the BRC-20 Bitcoin debate is similar to the blocksize wars of 2015-17, but this time, some combatants have switched sides.

How the DAO hack changed Ethereum and Crypto According to David Z Morris, the $60 million hack of 2016 was a major factor in the ICO boom that began the following year. This article is part of the “CoinDesk Turns 10 series.”

DCG Sees Refinancing Outstanding Genesis Obligations and Raise Growth Capital The crypto-conglomerate could owe hundreds of millions of dollars in loan payments due in May to its bankrupt lending unit.

James Rubin is the editor.