Weekly review: the market goes back to work

Over the past week, the crypto market’s capitalization has grown to 865 billion USD. The growth was more than 10%, allowing cryptocurrencies to significantly outperform traditional equity markets, which grew in the range of 2.7%-4.6%.

Cryptocurrency rates rose against the backdrop of good data in the American economy

On Thursday, quite good data on consumer inflation in the US came out. The indicator decreased for the third month and amounted to 6.5%. This trend allows the market to expect an end to the increase in the funding rate soon, which will lead to easier access to new liquidity. Markets for risky assets, particularly cryptocurrencies, are susceptible to such changes, and the slightest improvement in the situation invariably leads to the sector’s growth.

The SEC is on the warpath — litigation against Gemini and Genesis

Grayscale Trust and DCG could be involved in the process.

The beleaguered Gemini Earn program is now the linchpin in a new set of charges filed by the Securities and Exchange Commission against both Genesis and Gemini.

In announcing the charges, the **SEC **says the firms “raised billions of dollars worth of crypto assets from hundreds of thousands of investors”in Gemini Earn, describing it as an unregistered offering that qualifies as the sale of securities to retail investors.

“We allege that Genesis and Gemini offered unregistered securities to the public, bypassing disclosure requirements designed to protect investors”, SEC Chair Gary Gensler said in the announcement. “Today’s charges build on previous actions to make clear to the marketplace and the investing public that crypto lending platforms and other intermediaries need to comply with our time-tested securities laws”. He continued: “Doing so best protects investors. It promotes trust in markets. It’s not optional. It’s the law”.

Genesis is part of the holding Digital Currency Group, which also includes the largest holder of Bitcoin — grayscale trust. They can also be involved in the process as mutual cross-loans closely link them.

Polygon Proposes Hard Fork to Reduce Reorgs, Gas Spikes

After a heated community debate last month, Polygon Labs appears to be moving forward with plans to hard-fork the network early next week, according to a blog post published on Polygon’s website Thursday.

In the post, Polygon Labs claims the hard fork — proposed to occur January 17 — will help prevent network gas fee spikes and address chain reorganizations, also known as reorgs. Unlike soft forks, hard forks are not backward-compatible and require all node operators on the network to update to the latest software at a specified time.

Some hard forks are contentious, while others are simply major upgrades to a network.

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