Bitcoin, Ether Fall Outside Howey Test Criteria

This slight recovery in spot volumes has been accompanied by market depth. Orderbook depth, another critical liquidity metric, has improved since the beginning of May for BTC and ETH (more so for the latter than the former). This recovery is noteworthy because it follows extensive reports of two top crypto liquidity providers curtailing their U.S. trading activity, which would, all else equal, imply a deterioration of order book depth instead of the improvement we have seen.Among non-BTC and non-ETH assets, the market’s focus on liquidity is related to the impact on some of the assets mentioned in the SEC charges against Coinbase and Binance. Two weeks since the news broke, trading volumes in the five most prominent assets by market capitalization (SOL, ADA, MATIC, FIL, and ATOM) have not changed significantly. The most notable shift in these assets has been how trading activity seems to have moved from the U.S. to international markets since the beginning of the year, as the chart below shows.