A major cryptocurrency exchange is shutting down its doors on account of legal uncertainty. Furthermore, the digital currency exchange has reported that its usage rates have dropped drastically from expected rates. The trading platform is Rollbit and it is shutting down Degen Exchange and sister company called Rollbot.com.
The officials of the platform have cited that they are closing down the doors of their exchange platforms on account of regulatory troubles and a visible decline in the consumer engagement. The account holders on these trading platforms are directed to withdraw all their digital currency reserves.
Furthermore, the users may sell out their crypto holdings while they are allowed to purchase third-party cryptocurrencies. The closing of these exchange platforms will also impact native token RLB. The prices of this token have remained particularly unaffected.
Therefore, investors are likely to keep purchasing and selling RLB token on the spot market. The sister company of this trading platform Rollbot.com is also going down the same path. The account holders on this account may also only withdraw tokens and access limited functionality.
SEC to Make Some Important Decisions Regarding Crypto Sector
Securities and Exchange Commission has continued its reign against the cryptocurrency markets. The agency has brought a barrage of lawsuits against various digital currency entities with the current Chief Gary Gensler expressing his strong distaste towards the crypto sector. The agency has 13th October to appeal against the Grayscale decision.
The biggest Bitcoin trust emerged victorious for suing SEC about negligence and delaying of Bitcoin ETF Trust. The next important decision pending at SEC is its verdict on the Bitwise ETP Trust that is due for a deadline at 16th October.
Another important matter regarding cryptocurrency sector is iShares listing requested by NASDAQ. The SEC officials must submit their response on this matter by 17th October. The federal agency may issue their response at any time but these dates are the final threshold.
Meanwhile, SEC Chairperson is set to testify before the Financial Services Committee On Wednesday. A new development informed that Mount Gox Trustees have decided to delay payments to the creditors to next year.
Interest Hike Plan
The chief analyst of Morgan Stanely has recently reflected on the impact of the interest rates stability decision from Federal Reserve. Ellen Zentner is working as the head of Economics department at the investment bank.
Talking at a podcast, he discussed the wider impact of Fed’s decision to keep the interest rates at the current benchmark.
He also projected about the direction of monetary policy and its implications on the economy of the region. He opines that Fed has completed their interest hike plan but leave room for further advancement.
The analyst noted that inflation rates are currently falling such that FED is likely to maintain the current interest rates. He also projected that the Central Bank may be ready to cut down interest rates starting next year.
He talked about the conservative participation of Republican officials that can deplete economic data used by policy makers. This situation can led to strengthening of Federal Reserve control and influence over the economy.
He said that provided that labor markets slack grows, depleting employments rates continues, and essential services gains more momentum, Fed can start slashing down interest rates starting in May, 2024.