Having been found liable, Kwon and Terraform will be dealt a financial penalty, the size of which will be confirmed by the judge at a later stage. But the implications of the case spill further afield. Before the trial, the defense had called for dismissal on the grounds that the SEC had misclassified UST, LUNA, and other Terraform tokens as securities-a specific class of financial instrument from which investors expect to profit-and, therefore, lacked jurisdiction. They’ll likely be prevented from participating in the US securities market in the future. The debate over the appropriate classification of crypto is central to multiple ongoing legal disputes in the US, between the SEC and Ripple, Coinbase, and other firms.

The crypto industry has repeatedly accused the SEC of “regulation by enforcement”-of wielding legal action instead of articulating clear rules for the road-and making a jurisdictional land grab. The SEC should be allowed to “resolve new and difficult questions posed by emerging technologies where the technologies impact markets that on their face appear to resemble securities markets,” he ruled. However, in an opinion issued before the trial, Judge Jed Rakoff, who presided over the Kwon case in New York, rejected the arguments for dismissal. The opinion does not establish a rule that other US judges are duty bound to follow, but in combination with the verdict in favor of the SEC, sets a precedent of sorts for a crypto organization having violated US securities laws.

Since the order is rather large (high demand) compared to what is being offered (low supply), the orders at a lower bid cannot be filled until this order is satisfied – creating a buy wall. In this case, the buy wall is helping the $6,263 price level of bitcoin act as short-term support. The opposite of a buy wall is formed when there is an abundance of sell orders (supply) at a specific price level, known as a sell wall. Conversely, the sell side contains all open sell orders above the last traded price.

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When there is an abundance of buy orders (demand) at a specific price level, something known as a buy wall is formed. The price will not be able to sink any further since the orders below the wall cannot be executed until the large order is fulfilled – in turn helping the wall act as a short-term support level. In the example above, we can see a large order of 500.2 BTC units waiting to be filled with a bid of $6,263. Buy walls have an effect on the price of an asset because if the large order cannot be filled, neither can buy orders at a lower bid.

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