U.S. Government Shutdown Relieves Altcoin Market

The historic government shutdown in the U.S. has had significant effects on the cryptocurrency market. Altcoin projects have breathed a sigh of relief with the temporary halt of investigations conducted by the U.S. Securities and Exchange Commission (SEC). The SEC was investigating unusual trading activities ahead of disclosures related to some publicly traded companies' crypto treasury (Digital Asset Treasury). However, during this government shutdown, the potential insider trading investigation has been shelved.

Experts indicate that with the reopening of the government, the SEC will quickly resume the investigation. It is anticipated that the process could move to the subpoena stage within one to two months. At this stage, the SEC may request communications, emails, and social media records from companies, and if necessary, pursue official charges. This situation creates uncertainty, especially for investors, and causes their attention to turn towards the developments in the process.

This investigation, carried out during the Trump administration, is regarded as the SEC's first serious step toward cryptocurrency assets. Although the new administration has shown a closer stance towards cryptocurrencies, it has been noted that the purchases made by crypto treasury projects through debt have created new risks in the sector. For example, it is known that some companies owned by the Trump family also apply this strategy; among them are ALT5 Sigma (WLFI) and Trump Media & Technology Group.

Although there is no evidence of whether they are under direct investigation, legal experts emphasize that the process could be "politically sensitive." A legal consultant stated, "The SEC has to do just that. Crypto is growing rapidly, and if there are suspicious transactions, the agency's investigation instills confidence in the market," highlighting the importance of the process.

Investors should closely monitor market movements, considering these investigations into altcoin projects. While the development of the investigation may lead to potential price fluctuations, it is emphasized that investors should be cautious to minimize their risks.