It’s hard to believe that less than four years ago, AVAX USDT was trading in triple digits, at an all-time high of $158. Since that day in early 2022, the Avalanche crypto has fallen -91%, with the current -4.2% decline being the latest bloodbath for the Layer-1 blockchain project.
At its peak, AVAX was also among the top 15 tokens by market capitalization, but has since fallen to 32nd, with a valuation of $5.3 billion, a fall from grace since the token was once valued at over $30 billion. A recent alliance with the US SEC gives the Avalanche crypto community hope that favorable oversight could save its token from the depths of hell.
Ava Labs, developer of the Avalanche Crypto blockchain, meets with the US SEC: Can the SEC save AVAX price?
Avalanche developer Ava Labs, alongside the Blockchain Association and the Digital Chamber, recently met with the U.S. 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 Working Group indicates that the meeting included representatives from Ava Labs, Sidley Austin LLP, and the Blockchain Association.
They addressed regulatory challenges and explored potential avenues to harmonize crypto oversight, consistent with recent joint statements from the SEC, CFTC, and the President’s Working Group (PWG) report on Strengthening Digital Financial Technology in the United States.
Avalanche Joins Crypto Associations at Key SEC Working Group Meeting – BitcoinLinux – 2025-12-10
Ava Labs and crypto groups meet with SEC Crypto…
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– KryptoNews.com (@KryptoNewscom) December 10, 2025
Ava Labs and Sidley Austin have 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 operating in live systems as commodities.
This framework aims to clarify existing rules without requiring new laws and promote crypto trading in the United States, aligning with the Cryptocurrency Market Structure Bill.
Ava Labs, the Blockchain Association and the Digital Chamber have highlighted the need for clear regulation of 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, the fact that the SEC chose to meet with Ava Labs to discuss the future of crypto regulation could be seen as a positive sign.
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AVAX price continues to fall regardless of new SEC bromance
As of mid-December, Avalanche is trading around $12.5, down significantly from its previous cycle highs but holding above a long-standing demand zone at around $12. This level has historically absorbed selling pressure, with a level below $12 not seen on the AVAX chart since November 2023.
This area has served as a structural floor over several periods, with AVAX trading between $12 and $15 since mid-November. Short-term momentum remains neutral, with indicators such as the RSI and MACD giving neutral signals. AVAX is neither trending upward nor collapsing, reflecting an indecisive market with .cwp-coin-chart svg path { Stroke-width: 0.65 !important; } .cwp-coin-widget-container .cwp-graph-container.positive svg path: nth-of-type (2) { trait: #008868 !important; } .cwp-coin-widget-container .cwp-coin-trend.positive { color: #008868 !important; background-color: transparent !important; } .cwp-coin-widget-container .cwp-coin-popup-holder .cwp-coin-trend.positive { border: 1px solid #008868; border-radius: 3px; } .cwp-coin-widget-container .cwp-coin-trend.positive::before { border-bottom: 4px solid #008868 !important; } .cwp-coin-widget-container .cwp-coin-price-holder .cwp-coin-trend-holder .cwp-trend { background-color: transparent !important; } .cwp-coin-widget-container .cwp-graph-container.negative svg path: nth-of-type (2) { trait: #A90C0C !important; } .cwp-coin-widget-container .cwp-coin-popup-holder .cwp-coin-trend.negative { border: 1px solid #A90C0C; border-radius: 3px; } .cwp-coin-widget-container .cwp-coin-trend.negative { color: #A90C0C !important; background-color: transparent !important; } .cwp-coin-widget-container .cwp-coin-trend.negative::before { border-top: 4px solid #A90C0C !important; }
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holding above $85,000 but unable to cross $100,000.
(SOURCE: TradingView)
@SeniorDefi, a DeFi researcher on X, published Avalanche crypto outlook. They reiterate the crucial support level of $12, saying:
“The altcoin sector is dominated by the global liquidity crunch and risk aversion. $AVAX has fallen 20% in 30 days, currently testing the vital $12.00 to $12.50 range.
Defending the fundamental support of $12 is essential. Technical indicators signal that the likelihood of a downward move remains high if this level fails. Conversely, institutional activity (e.g., Abu Dhabi DLT) strengthens long-term fundamentals.
Breaking resistance at $16.30 could trigger a relief rally towards the $20-$25 range, validating the institutional narrative on near-term fear.
The “Abu Dhabi DLT” mentioned is recent announcement of a joint Distributed Ledger Technology (DLT) foundation between Avalanche crypto and Abu Dhabi Global Market (ADGM). This is an important milestone in Avalanche’s long-term vision to support Web3 adoption and ecosystem growth in the Middle East and North Africa (MENA).
It remains to be seen whether the launch of a DLT foundation with Middle Eastern companies or a tie-up with the US SEC will positively affect Avalanche’s crypto chart. Nonetheless, it is an important step in the right direction at a fundamental level.
From a price action perspective, it is crucial that AVAX price maintains above $12; otherwise, a drop to $10 or less could be a real possibility before the end of 2025.
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The post AVAX USDT Fights to Hold $12: Will SEC-Avalanche Crypto Friendship Save AVAX Price? appeared first on 99Bitcoins.
