Cryptocurrency enthusiast James Murphy, known as MetaLawMan, recently revisited a dark period in the crypto industry’s history in a post titled “A stroll down memory lane.” He recalled the government’s alleged plan to “asphyxiate” the crypto sector, leading to a severe downturn in March 2023.
In a series of posts on social media platform X, MetaLawMan detailed the government’s systematic actions against the crypto space, emphasizing that March 2023 could be a month to remember in the history of cryptocurrency.
Key Events in the Crypto Crackdown
The crackdown began on March 8, 2023, when Silvergate, a prominent financial institution, announced its closure and liquidation, causing turmoil in the crypto market. This event was followed by the shutdown of banking giants Silicon Valley and Signature Bank by regulators, further destabilizing the industry. Crypto firms in Hong Kong’s crypto hub also faced intense pressure as a result of these closures.
On March 20, the White House released the Economic Report, which highlighted the risks associated with cryptocurrencies, including market volatility and fraudulent activities. The Securities and Exchange Commission (SEC) then issued a Wells Notice against Coinbase, accusing the exchange of operating as an illegal, unregistered securities exchange. Regulators continued to issue warnings about the legality of the US crypto market, culminating in the Federal Reserve’s rejection of Custodia Bank’s application to join the Federal Reserve system due to its involvement in crypto activities.
Crypto’s Resilience
Despite facing significant challenges, cryptocurrencies such as Bitcoin, XRP, and Ethereum showed resilience during the crackdown. Prices of these leading cryptocurrencies experienced gains between March 7 and March 25, defying the market turmoil. Bitcoin, XRP, and Ethereum saw their prices rise from $22,000, $0.37, and $1,550 to $27,500, $0.46, and $1,750, respectively.
Looking back on the events of March 2023, MetaLawMan highlighted the government’s continued targeting of the crypto industry and urged the community to stand strong and fight for survival.
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