Regulation
Bitcoin Back Above $63,000
Key points
- Bitcoin surged above $63,000 again on Monday, after falling below $60,000 last week.
- Last week, the U.S. SEC filed a lawsuit against blockchain technology startup Consensys over its securities offering through its MetaMask crypto wallet.
- Cryptocurrency exchange Coinbase has filed lawsuits against the SEC and FDIC, seeking information about the governing bodies’ decisions regarding cryptocurrencies.
- Investment giant VanEck has filed for a Solana spot ETF.
Bitcoin (BTC) climbed back above $63,000 on Monday after falling below $60,000 last week. Last week’s price weakness was partly a function of investors becoming apprehensive as the defunct cryptocurrency exchange Mt. Gox Announces Plans to return goods to their customers after being hacked nearly a decade ago.
Last week was also full of legal news for cryptocurrencies. The United States Securities and Exchange Commission (SEC) has filed charges against blockchain technology firm Consensys in connection with its alleged securities offering through its MetaMask crypto wallet, while Coinbase (CURRENCY) sued the SEC and the Federal Deposit Insurance Corporation (FDIC).
On the brighter side of things, investment manager VanEck is so confident that the regulatory environment for cryptocurrencies in the United States is set to improve that he has applied for a Solana position. exchange-traded fund (ETF).
SEC Sues Consensys
The SEC filed a lawsuit against Consensys alleging that the company operated as an unregistered broker and engaged in the unregistered offering and sale of securities via staking on its crypto wallet MetaMask since 2020. According to the complaint filed on June 28, Consensys generated more than $250 million in commissions through its unregistered services.
The SEC’s complaint seeks a permanent injunction, civil penalties, and other equitable relief against Consensys for violating the federal securities laws.
“The SEC has pursued an anti-crypto agenda driven by ad hoc enforcement actions. This is just the latest example of its over-regulation: a transparent attempt to redefine long-standing legal standards and expand the SEC’s jurisdiction through legal action,” Consensys said in a statement.
This is not the first time the two sides have been involved in a legal battle. In response to an earlier notification from Wells, Consensys sued the SEC in Aprilchallenging the agency to uphold its classification of ether (ETH), which is the underlying cryptocurrency on Etherealas a guarantee.
Coinbase Files New Lawsuits Against SEC, FDIC
Coinbase has has initiated legal proceedings against the SEC and FDIC for failing to comply with its requests for information on past cryptocurrency investigations. This lawsuit comes in the midst of a SEC lawsuit pending claiming that Coinbase operates as an unregistered stock exchange.
Coinbase claims the SEC and FDIC withheld critical information and failed to respond to Freedom of Information Act (FOIA) requests.
These requests sought details on the SEC’s stance on Ethereum. test of participation transition and information from closed investigations into crypto entities. Additionally, Coinbase’s complaint against the FDIC highlights alleged efforts to isolate the cryptocurrency sector from banking services.
VanEck Files Application for Solana ETF
On Thursday, VanEck filed for a Solana (SOL) ETF. The firm aims to be first in line for SEC review of a Solana ETF, given that early-stage applications often get priority. Despite skepticism about SEC approval, given Solana’s classification as a security in previous lawsuits, VanEck’s head of digital asset research Matt Sigel told The Block that now is an opportune time to pursue the product, as regulatory conditions for cryptocurrencies are becoming more favorable.
To support his theory, Sigel refers to recent legislative advances and SEC’s unexpected approval of spot ether ETFs as indicators of an evolving landscape. While some experts doubt the likelihood of approval due to the absence of Solana futures, Sigel refutes the need for such a requirement. He points out that market surveillance can be achieved through other means, such as information-sharing agreements, as demonstrated by BlackRock IBITS Bitcoin ETFs.
Recently, Solana has earned a reputation as a favorite launching pad for various meme coins AND celebrity-backed tokensFollowing VanEck’s application, 21Shares also applied for its own Solana ETF offering.
What to expect from the markets this week
While the rest of the cryptocurrency markets await final SEC approval for ether ETFs, all eyes will be on bitcoin prices this week, following last week’s high volatility.
Much is also expected in terms of cryptocurrency regulation, especially after the recent rulings of the United States Supreme Court.
In a 6-3 vote last week, the Supreme Court found the Chevron precedent unenforceable because of its reliance on statutory ambiguity. The court’s decision to overturn the doctrine, which has given federal agencies broad leeway in interpreting laws, could be “incredibly important” for the cryptocurrency industry, according to Zero Knowledge Consulting founder Austin Campbell.
Campbell says the regulatory stability this ruling provides is critical for industries like cryptocurrency, where the SEC, Commodity Futures Trading Commission (CFTC)and banking regulators must now strictly adhere to the written rules. This change could also push Congress to take a more active role in clarifying the laws, ultimately providing greater judicial and legal certainty for the cryptocurrency industry. In particular, the cryptocurrency industry has criticized the SEC for not providing clear guidelines on how to legally operate in the United States