In the latest episode of The Market Report, analyst and writer Marcel Pechman explains that United States inflation slowed for an 11th straight month in May, even though the Consumer Price Index increased 4% year-over-year. That’s down from 4.9% in April but still above the 2% target.
Next, Pechman raises the question of regulation in light of the U.S. Securities and Exchange Commission suing Binance and Coinbase for allegedly violating securities laws by offering tokens including BNB (BNB), Solana (SOL), Cardano (ADA), Polygon (MATIC) and Algorand (ALGO), among others.
When analyzing Binance’s appeal to the SEC’s attempt to freeze its funds, Pechman says the exchange is fighting back and shows how flawed some of the regulator’s arguments are, especially regarding Merit Peak, the offshore trading entity. Pechman emphasizes that Binance.US clients will not face losses even if there is stronger intervention by regulators.
Furthermore, Pechman explains why it is so important for the SEC to score a win in this case, opening room for further action, potentially including the U.S. Department of Justice. But, for now, his base case assumes zero impact on Binance’s international operations.
Next, the show covers a proposed bill in the U.S. House of Representatives, which aims to fire and replace SEC chair Gary Gensler. According to Pechman, Gensler could only be removed from the position if some kind of wrongdoing is proven, which doesn’t seem to be the case.
Pechman explains that there’s an apparent effort to suppress the crypto industry in the U.S., although we don’t yet know the motives. However, the SEC is not acting alone or opposing recent actions from the Commodity Futures Trading Commission, the Department of Justice and the New York Department of Financial Services.
As for the Hinman documents, Pechman reminds everyone that it happened five years ago, so no sane judge would consider a former SEC employee’s opinion from that era to rule on whether XRP (XRP) is a security or not.
The show airs every Tuesday on the Cointelegraph Markets & Research YouTube channel. Don’t miss it!