Bitcoin and ether dip following SEC and Binance.US's temporary deal

Bitcoin dipped on Monday, as traders looked to central banks and regulators. Photo: STRF/STAR MAX

Prices of the largest cryptoassets dipped slightly on Monday, as the US Securities and Exchange Commission (SEC) signed off a temporary deal with exchange giant Binance on Saturday and markets digested moves from the Fed from last week.

Bitcoin (BTC-USD) dipped about 0.7% in early trade in London, but held onto a weekly gain of around 1.6%, according to Yahoo Finance data. It was trading at $26,400 by 8.45am BST. It had hit three-month lows at the end of last week.

Ether (ETH-USD) fell 0.5% to $1,720, compounding weekly losses.

The agreement between the SEC and Binance’s US arm, announced late on Friday, is to ensure that only Binance.US employees can access customer funds in the short term. Judge Amy Berman Jackson, of the District Court for the District of Columbia, also ordered the parties to begin proposing timelines for a broader lawsuit.

Binance’s US arm is set to lay out detailed information about expenses, including business costs, in the next few weeks.

The agreement is set to address some of the SEC’s concerns about its broader case against Binance. It sued both the global entity – Binance, and its US business, Binance.US, on charges of offering and trading unregistered securities. It also alleged commingling of customer funds.

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Meanwhile, traders have been encouraged by the Federal Reserve’s moves last week to hold on raising interest rates again.

“Holding the target range steady at this meeting allows the Committee to assess additional information and its implications for monetary policy,” the central bank’s post-meeting statement said.

Despite the positive move for markets, the Fed also signalled two more interest rate rises before the end of the year.

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