Iran-Israel Conflict Sparks Bear Market, SEC to Sue Uniswap

On Sunday, April 14, crypto prices plummeted as a direct result of escalating tensions between Iran and Israel. This significant downturn in the market saw Bitcoin fall to $60,660, marking a one-month low. This drop followed a week of declines, beginning on April 12 when Bitcoin dipped to the $65,000 range, dragging the global crypto market cap down to $2.2 trillion. The conflict led to over $860 million being wiped out in the derivatives market due to massive liquidations.

Regulatory Challenges and Legal Battles

In addition to market instability, the crypto industry faces increased scrutiny from U.S. regulators. Uniswap, the world’s largest Ethereum-based decentralized exchange, received a Wells Notice from the Securities and Exchange Commission (SEC) on April 10. This notice is an indication that the SEC may pursue legal action against Uniswap. Following this news, Uniswap’s native token, UNI, experienced a 17% drop in value. Hayden Adams, Uniswap’s founder, has declared his intention to vigorously contest any charges.

The U.S. regulatory climate for cryptocurrencies remains a focal point. Recent discussions in Congress have centered around regulating stablecoins, with a bipartisan bill expected soon. This follows Ripple’s announcement of its plan to launch a stablecoin within the year. Meanwhile, former Ethereum advisor Steven Nerayoff has sued the U.S. government, seeking $9.6 billion for what he claims is unfair treatment by federal agencies.

Global Crypto Regulations Intensify

Globally, regulatory measures continue to evolve. Russia’s central bank has urged lawmakers to accelerate the development of legislation that would regulate cryptocurrencies for international settlements. Hong Kong is also experiencing regulatory uncertainties, prompting some crypto firms to consider relocating. British Columbia is addressing the high energy consumption of crypto mining by proposing legislative changes to regulate the industry.

Sam Bankman-Fried, founder of FTX, is appealing his 25-year jail sentence, maintaining his detention in Brooklyn until the appeal is processed. Ryan Salame, another former FTX executive, awaits his sentencing later in May. Additionally, Do Kwon, founder of Terra, faces extradition from Montenegro, with decisions pending on whether he will be sent to South Korea or the U.S. to face charges.

The Solana network encountered congestion issues this week due to a spike in network activity, largely driven by the trading of meme coins like Bonk (BONK) and dogwifhat (WIF). Anza, a developer team for Solana, has rolled out updates to mitigate these congestion issues, aiming to improve network performance as adoption grows.