Crypto Industry News:

The Securities and Exchange Commission and the Commodity Futures Trading Commission have issued a joint fine on Abra, a crypto application that allows users to get synthetic exposure to traditional markets.

According to the SEC, Abra offered "swaps based on securities" to retail investors without proper registration, and "did not carry out these swaps on a registered national stock exchange."

Abra offered a kind of "centralized" synthetic asset in which users could obtain exposure to traditional securities, such as shares, by introducing Bitcoin and Litecoin as collateral. The system removed or added coins based on the up or down movements of the underlying securities.

As per SEC, this feature was introduced in February 2019 for all users, including the United States. Talks with SEC employees led Abrra to stop this function shortly thereafter. However, they introduced it again in May this year, this time preventing the participation of US residents.

It seems that this was not enough to avoid control. Despite moving some operations to the Philippines, Abra employees in California designed, marketed and secured contracts, and checked users who were admitted.

Daniel Michael, head of the SEC Enforcement Division Compound Financial Instruments Team, warned that companies cannot "evade federal securities laws" simply by contacting non-US retail investors "while operating key parts of their business in the United States."

Technical Market Outlook:

The ETH/USD pair has reverses the recent rally after the breakout above the short-term trend line resistance turned out to be a false one. The bears took the control over the market again and pushed it close to the level of the local technical support located at $235.42. If the drop is continued, then the next targets for bears are seen at the levels of $232.04 and $224.39. Please notice, the momentum starts to decrease as well which is in line with the short-term bearish outlook.

Weekly Pivot Points:

WR3 - $274.89

WR2 - $261.89

WR1 - $250.42

Weekly Pivot - $236.01

WS1 - $225.12

WS2 - $210.17

WS3 - $199.13

Trading Recommendations:

On the EUR/USD pair, the main long-term trend is down, but the local up trend continues. The key long-term technical support is seen at the level of 1.0336 and the key long-term technical resistance is seen at the level of 1.1540. Only if one of this levels is clearly violated, the main trend might reverse (1.1540) or accelerate (1.0336).