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It is hard to believe that less than four years ago, AVAX USDT was trading in the triple digits, at an all-time high of $158. Since that day in early 2022, Avalanche crypto has fallen by -91%, with today’s -4.2% drop the latest bloodbath for the Layer-1 blockchain project.
During its height, AVAX was also a top 15 token by market cap, but has since dropped to 32nd, with a valuation of $5.3Bn, a fall from grace as the token was once valued at over $30Bn. A recent alliance with the US SEC has the Avalanche crypto community hoping that favourable oversight could rescue their token from the depths of hell.
Ava Labs, Developer of the Avalanche Crypto Blockchain, Meets With the US SEC: Can the SEC Save the AVAX Price?
Avalanche developer Ava Labs, alongside the Blockchain Association and The Digital Chamber, recently met with the US Securities and Exchange Commission (SEC) to discuss regulatory oversight of crypto assets, particularly protocol tokens, by the SEC and the Commodity Futures Trading Commission (CFTC).
A memo from the SEC Crypto Task Force noted that the meeting included representatives from Ava Labs, Sidley Austin LLP, and the Blockchain Association.
They addressed regulatory challenges and explored potential pathways for harmonizing crypto oversight, in line with recent joint statements from the SEC, CFTC, and the President’s Working Group (PWG) report on strengthening digital financial technology in the US.
Avalanche Joins Crypto Associations in Key SEC Task Force Meeting – BitcoinLinux – 2025-12-10
Ava Labs and crypto groups meet with the SEC Crypt…
Read morehttps://t.co/8j0PRn1l0g
— KryptoNews.com (@KryptoNewscom) December 10, 2025
Ava Labs and Sidley Austin proposed a two-part regulatory approach for protocol tokens: the SEC would classify the initial token sale as an investment contract, while the CFTC would regulate tokens already functioning in live systems as commodities.
This framework aims to clarify existing rules without requiring new laws and to foster crypto trading in the US, aligning with the Crypto Market Structure bill.
Ava Labs, the Blockchain Association, and The Digital Chamber emphasized the need for regulatory clarity on protocol tokens, consistent disclosure, and responsible innovation to ensure investor protection.
It remains to be seen whether the outcome of Ava Labs’ meeting with the SEC and CFTC will have a positive impact on the AVAX/USDT chart. Still, it could be seen as a positive sign that the SEC chose to meet with Ava Labs to discuss the future of crypto regulation.
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AVAX Price Continues to Freefall Regardless of New SEC Bromance
As of mid-December, Avalanche trades around $12.5, down significantly from its prior cycle highs but holding above a long-standing demand zone at around $12. This level has historically absorbed selling pressure, with sub-$12 not seen on the AVAX chart since November 2023.
This area has served as a structural floor across multiple timeframes, with AVAX trading between $12 and $15 since mid-November. Short-term momentum remains neutral, with indicators such as RSI and MACD flashing neutral signals. AVAX is neither trending decisively higher nor breaking down, reflecting an indecisive market with
Bitcoin
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holding above $85,000 but unable to crack $100,000.
@SeniorDefi, a DeFi researcher on X, posted an Avalanche crypto outlook. They reiterate the crucial $12 support level, saying;
“The altcoin sector is dominated by global liquidity tightening and risk aversion. $AVAX has dropped 20% in 30 days, currently testing the vital $12.00 – $12.50 range.
Defense of the $12 foundational support is critical. Technical indicators signal that the probability of a downside move remains high if this level fails. Conversely, institutional activity (e.g., Abu Dhabi DLT) reinforces long-term fundamentals.
Breaching the $16.30 resistance could trigger a relief rally toward the $20 – $25 range, validating the institutional narrative over short-term fear.”
The ‘Abu Dhabi DLT’ mentioned is the recent announcement of a joint Distributed Ledger Technology (DLT) Foundation between Avalanche crypto and the Abu Dhabi Global Market (ADGM). It is seen as a significant milestone in Avalanche’s long-term vision to support Web3 adoption and ecosystem growth across the Middle East and North Africa (MENA).
Whether the launch of a DLT Foundation with Middle Eastern firms or cozying up to the US SEC will positively affect the Avalanche crypto chart remains to be seen. Still, it is a strong step in the right direction on a fundamental level.
From a price action standpoint, it is crucial that the AVAX price holds above $12; otherwise, a drop to $10 or below could be a real possibility before 2025 comes to a close.
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The post AVAX USDT Battles To Hold $12: Will SEC-Avalanche Crypto Friendship Save AVAX Price? appeared first on 99Bitcoins.
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