Crypto’s ‘March to Remember’: A Look Back at the 2023 Crackdown

In an X post titled “A stroll down memory lane,” crypto enthusiast James Murphy, aka MetaLawMan, revisited the U.S. government’s alleged plan to “asphyxiate” the crypto industry. He recalled the crypto sector’s severe downturn in March 2023, triggered by a stringent government crackdown that unfolded over just 18 days.

In a series of X posts during March 2023, MetaLawMan chronicled the government’s systematic actions against the crypto space. He provocatively stated, “When the history of crypto is written, this may be a March to remember.”

Key Events in the Crypto Crackdown

On March 8, 2023, the financial giant Silvergate announced its closure and subsequent liquidation. This news sent shockwaves through the crypto market, impacting leading crypto firms. On the same day, Senator Elizabeth Warren stressed the need to address crypto-related risks and called on regulators to take action.

The crypto market experienced a major crash in the following days as regulators shut down banking giants Silicon Valley and Signature Bank. Numerous crypto firms, including well-established ones in Hong Kong’s crypto hub, faced severe pressure following the banks’ collapse.

On March 20, the White House released the Economic Report, which highlighted the threats associated with crypto, including market volatility, manipulation, and other fraudulent activities.

Shortly after, the Securities and Exchange Commission (SEC) issued a Wells Notice against Coinbase, a major crypto exchange, alleging it was an “illegal, unregistered securities exchange.” The next day, regulators issued warnings about the market, broadly claiming that the US crypto market was operating illegally. On March 24, the Federal Reserve rejected Custodia Bank’s application to join the Federal Reserve system, citing its involvement in crypto activities.

Crypto’s Resilience

Despite the industry’s severe challenges, cryptocurrencies, including the often volatile Bitcoin, stayed relatively stable and even showed a slight increase. As MetaLawMan noted, leading cryptocurrencies – including Bitcoin, XRP, and Ethereum – experienced significant price gains between March 7 and March 25, rising from $22,000, $0.37, and $1,550 to $27,500, $0.46, and $1,750, respectively.

Read also: Crypto Crash: Ethereum Plunges as US, Japan Stocks Slide

Reflecting on these events in March 2023, MetaLawMan stated that the government would persist in targeting the crypto industry. Furthermore, he asserted that the crypto community needs to stay strong and fight for its survival.