Bitcoin drops below $28,000 after Coinbase’s SEC notice

The global crypto currency market cap was at $1.2 trillion, a decline of 0.1 per cent

Bitcoin (BTC-USD) dropped below the $28,000 level indicating investors are wary and waiting the outcome of the U.S. Securities and Exchange Commission’s (SEC) notice to Coinbase.

Bitcoin was 1.4 per cent lower to $27,864 on Monday.

Ethereum (ETH-USD) declined 2.6 per cent to $1,756.

The global crypto currency market cap was at $1.2 trillion, a decline of 0.1 per cent, as per Coingecko data.

Last Wednesday, the SEC issued Coinbase Global Inc with a Wells notice — a formal announcement that the regulator plans to recommend an enforcement action.

Shares in Coinbase (COIN) declined around 13 per cent to $67.83.

If the Securities and Exchange Commission officially classifies crypto currencies as securities it would affect the trade volume on crypto currency exchanges such as Coinbase.

All crypto currencies, other than bitcoin, would need to register with the Securities and Exchange Commission, and be compelled to adopt technology systems to make their order books audit-compliant.

They would also face stringent rules on order execution to stop market manipulation.

Exchanges like Coinbase could risk big fines from the Securities and Exchange Commission for listing crypto currencies that the regulator would consider as being unregistered securities.

Securities and Exchange Commission chair Gary Gensler said he considers all crypto currencies securities barring bitcoin.

The crypto currency market continued to be largely in the green after the Federal Reserve decided upon a less hawkish rate hike at last Wednesday’s Federal Open Market Committee (FOMC).

The Fed’s 0.25 per cent rise takes the benchmark federal funds rate to a target range of between 4.75 per cent-5 per cent.

The Committee will closely monitor incoming information and assess the implications for monetary policy, according to the Federal Open Market Committee’s post-meeting statement.