Ethereum

Ethereum ETFs May Have Ended the SEC’s War on Crypto

Published

8 months ago

2 June, 2024

Ethereum ETFs May Have Ended the SEC's War on Crypto

that of May Ethereum spot ETF approval by the United States Securities and Exchange Commission (SEC) was the final blow to what can only be described as a record month for crypto policy – and the move could seriously jeopardize the The SEC’s Ongoing Crypto Crackdown.

As the deadline for approval of Ethereum ETFs approached, a bipartisan group of members of the House of Representatives sent a letter to SEC Chairman Gary Gensler urging the Commission to not only approve the funds, but also consider approving “other” digital asset ETFs in the future. And finally, the SEC finally went public late on that fateful Thursday and announced the approval of eight one-time Ethereum ETF applications.

According to Paul Grewal, Coinbase’s chief legal officer, the SEC’s approval of spot ETFs effectively considers Ethereum (ETH) to be a commodity. If Grewal is right his assessmentthen an ETH commodity would fall under the oversight of the Commodity Futures Trading Commission (CFTC), as opposed to the SEC, which is responsible for regulating securities.

This is a key distinction for ETH because the SEC’s mandate is to police securities and protect investors. Rather, the CFTC regulates commodities such as raw materials and agricultural products, with a focus on preventing market manipulation and fraud. The CFTC’s regulatory framework for commodities is therefore generally less strict than the SEC’s treatment of securities.

As digital assets continue to see mass adoption, there remains an ongoing debate over which federal agency should have jurisdiction over the regulation and enforcement of this new and innovative technology.

In 2021, former CFTC Commissioner Dawn Stump Gave a speech on the now infamous Case of XRP SEC enforcement measuresand noted that she was “closely monitoring the outcome of this case as it would help establish the scope of the SEC’s authority in the area of digital assets.”

Commissioner Stump added:

Regulatory enforcement of digital assets, like the assets themselves, is evolving every day. This is exciting, but also frustrating for those seeking more certainty. But the incredible transformation of this space requires adaptation and creative thinking, and, let’s be honest, that’s not a regulator’s natural inclination. …This is where the regulatory state of digital assets currently stands: we need to enable innovators to think creatively so that the story can evolve, we need to recognize that there will be divergences in opinion as to the usefulness and potential of different products, and we should expect some storms to arise. It is these considerations that should guide us, as regulators, in exercising the powers necessary to fulfill our mission so that the market can develop and reach its full potential.

Perhaps the approval of the Ethereum ETF brings exactly the kind of regulatory clarity this industry has been looking for. If ETH and other similar cryptocurrencies are not securities, the SEC does not have jurisdiction to regulate these assets under the Securities Act of 1933 and the Securities Exchange Act of 1934.

This means that the SEC can no longer assert that these tokens are investment contracts under the Howey test. If ETH and similar tokens are commodities, then crypto lawyers could argue in court that these cryptocurrencies are not investment contracts that come with an “expectation of profits from the efforts of others” – critical elements that the SEC must prove under the Howey test.

Importantly, by tacitly acknowledging that Ethereum is a commodity, the SEC may have just undermined its own legal arguments raised in several ongoing crypto enforcement court cases.

If the courts are receptive to ETH and potentially other cryptocurrencies being commodities, then that could turn the tide of the SEC’s ongoing lawsuits against major crypto trading platforms like Coinbase and Kraken. These lawsuits rely on the SEC’s argument that certain tokens traded on these platforms are securities. But if Ethereum and similarly situated tokens are instead commodities, then that could green light a new motion to dismiss the SEC’s lawsuits against Coinbase and Kraken.

If the federal judges in these cases agreed with this argument, it would essentially weaken the SEC’s claims that Coinbase and Kraken both offer trading in unregistered securities.

Such a move would deal a devastating blow to SEC Chairman Gary Gensler, who is already facing intense scrutiny from critics who say his aggressive approach to enforcement regulation is stifling the industry’s growth. of digital asset technology in the United States and drives innovation. abroad to more favorable jurisdictions.

As noted in Grewal’s recent article Post to Twitter (aka X)Now that the SEC has effectively stated that “sales of ETH cannot be securities because Ethereum ETFs can be registered by funds with an S-1”, the SEC has essentially agreed that ETH no longer has “ecosystem” than Bitcoin.

The SEC’s recent approval of Ethereum ETFs has profound potential implications for ongoing and future legal battles in the digital assets sector. By suggesting that ETH and other similarly situated tokens are commodities, the SEC may have significantly limited its power to aggressively police the crypto industry.

The Ethereum ETF’s decision could therefore further encourage players in the digital asset industry to resist overzealous enforcement, leading to fewer settlements and more court battles.

Getting long-awaited clarity on whether ETH is a security or commodity could also narrow the SEC’s jurisdiction over Ethereum and other similarly situated cryptocurrencies. This in turn could lead to a dramatic narrowing of the SEC’s regulatory reach in the digital assets sector. Crypto lawyers will no doubt use the ETF decision to aggressively push back against ongoing SEC enforcement actions and lawsuits, and argue that the agency has overstepped its mandate.

If more digital assets are treated as commodities similar to what the Ethereum ETF decision suggests, then lawmakers could finally pass laws to significantly reduce the SEC’s reach over these assets. As a result, these tokens could be subject to potentially less strict regulation under the CFTC. Such a change in agency oversight would create fewer regulatory hurdles for crypto startups and foster a new wave of innovation in this sector.

Crypto lawyers will likely leverage the ETF decision to reshape existing strategies with respect to how they advise clients in the digital asset space. These strategies may include advising crypto clients to place greater emphasis on the tradable nature of their tokens and platforms, in an effort to better protect them from SEC reach.

If Coinbase and Kraken’s legal defense teams succeed in dismissing pending SEC lawsuits based on the Ethereum ETF decision, then this could generate very favorable legal precedents that would influence future regulation of the crypto industry. digital assets and would pave the way for a new wave of blockchain innovation. in the USA

A new era of clarity regarding digital asset laws would also benefit investigators and attorneys employed within the SEC and CFTC, creating a potentially more predictable and stable regulatory environment. This would result in a more efficient use of agency resources, as opposed to the legally ambiguous environment in which we currently operate. Regulatory clarity would also bring much-needed consistency to judges presiding over digital asset cases and generate more consistent and predictable outcomes.

I strongly believe that crypto lawyers are the gatekeepers of blockchain and play a vital role in the continued growth and adoption of crypto technology in the United States. The recent Ethereum ETF decision will only allow crypto lawyers to better advise and guide clients in the digital assets sector – and I’m excited to see how they creatively use this opportunity to do just that.

Edited by Andrew Hayward

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Ethereum

Ethereum (ETH) Whales Are Getting Incredibly Bullish: Details

Published

6 months ago

1 August, 2024

BlockChainGuardian Staff

Ethereum (ETH) Whales Are Getting Incredibly Bullish: Details

Cover image via www.freepik.com

Disclaimer: The opinions expressed by our editors are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not responsible for any financial loss incurred while trading cryptocurrencies. Do your own research by contacting financial experts before making any investment decisions. We believe all content to be accurate as of the date of publication, but some offers mentioned may no longer be available.

Ethereum (ETH) Whales are making major moves in the cryptocurrency market, suggesting strong bullish sentiment despite short-term price volatility. According to crypto analyst Ali Martinez, these big investors have accumulated over 126,000 ETH in the last 48 hours, or about $440 million.

In a tweet, Ali wrote: “Ethereum whales have accumulated over 126,000 ETH in the last 48 hours, worth around $440 million.”

According to CryptoQuant CEO Ki-Young-JuWhales may be preparing for the next move in the market. Ju wrote in a tweet that “whales may be preparing for the next rally in altcoins.” He noted that the volume of limit buy orders for altcoins, excluding Bitcoin and Ethereum, is increasing, indicating that strong buy walls are being put in place.

Ethereum’s recent developments, including the recent launch of Ethereum spot ETFs in the US, appear to have increased its appeal among large holders, known as crypto whales. Ethereum recently celebrated nine years since its inception, and as the ETH network continues to evolve, it is likely to attract more institutional interest.

According to data from Farside Investors, fund flows into U.S.-listed Ethereum spot exchange-traded funds turned net positive daily for the first time since their inception on July 31, primarily due to a decrease in outflows from the Grayscale Ethereum Trust.

Ethereum Price Drops Due to Market Crash

Bitcoin and Ethereum, along with the majority of other crypto assets, appear to be underperforming during Thursday’s trading session.

According to CoinMarketCap dataAt the time of writing, Bitcoin’s price was $64,034, down 2.77% from the previous day. Ethereum’s price is down 4.21% from $3,175, where it was 24 hours ago. Several cryptocurrencies were posting larger losses; Solana’s Dogwifhat was down 12% in the past 24 hours, and PEPE was down 7% in the same period.

According to CoinGlass, price followers have led to the liquidation of $225 million worth of derivatives contracts over the past day.

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Ethereum

Ethereum (ETH) Price Hits $50,000? Target Updated by Analyst

Published

6 months ago

1 August, 2024

BlockChainGuardian Staff

Ethereum (ETH) Price Hits $50,000? Target Updated by Analyst

Vladislav Sopov

Extreme skepticism from Ethereum (ETH) detractors has prompted a veteran researcher to double down on Ether

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Ethereum (ETH) proponent and AI enthusiast Adriano Feria has presented an extremely optimistic Ether price prediction. After the reaction of skeptics, he reconsidered the target, increasing it by 100%. His views are aligned with those of major institutional players, according to recent data.

Ethereum (ETH) bullish hypothesis should get us there: researcher

Ethereum (ETH) could hit $50,000 early in the current cryptocurrency market cycle. At the same time, a “bullish scenario” could push the price of the second-largest cryptocurrency to six-digit values, Web3 and AI educator Adriano Feria told X.

In a tweet shared with his 14,000 followers, Feria stressed that he is confident in the promising prospects of Ethereum (ETH) despite the massive wave of hatred against Crypto X. The doubters will regret their skepticism, the researcher admits:

If you hold ETH today, you are truly part of the global elite, because the bullish scenario for ETH should take us to $100,000. You think this is a joke, but there are real financial institutions around the world that have set bullish targets that are close to this. And no, this is not a joke.

Three days ago, he “increased” the $28,000 per ETH prediction published by Eric Conner, a veteran of the Ethereum (ETH) ecosystem and co-author of EIP 1559.

These ultra-bullish statements come amid growing disbelief triggered by ETH’s weak short-term performance.

The second-largest cryptocurrency failed to take off following the launch of the Ether ETF in the United States. At press time, Ethereum (ETH) was trading at $3,311, down nearly 6% from the local peak set after the ETF launched on July 23.

Insane BTC and ETH Price Predictions Released Every Day

As previously reported by U.Today, in February, Feria noted the rapid increase in popularity of ETH staking based on on-chain data.

In recent days, more and more analysts are sharing incredibly high predictions for Bitcoin (BTC) and Ethereum (ETH), the two largest cryptocurrencies.

For example, US asset management heavyweight VanEck has suggested two scenarios for the price of BTC in 2050.

The most optimistic scenario sees BTC surpassing $52 million per coin, while the $2.9 million mark is considered a “baseline” scenario by VanEck.

About the Author

Vladislav Sopov

Blockchain analyst and writer with a scientific background. 6+ years in computer analysis, 3+ years in blockchain.

I have worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

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Ethereum

Lloyd’s of London-backed insurance policies can now be paid in crypto on Ethereum

Published

6 months ago

1 August, 2024

BlockChainGuardian Staff

Lloyd's of London-backed insurance policies can now be paid in crypto on Ethereum

Lloyd’s of London, the three-century-old insurance marketplace, is supporting digital asset protection policies curated on the Ethereum public blockchain that can be paid for natively, on-chain, using cryptocurrency, through Lloyd’s Coverholder Evertas and smart contract insurance provider Nayms.

Not so long ago, any kind of cryptocurrency insurance coverage Finding solutions was difficult. Aside from the efficiency benefits of paying for insurance policies in cryptocurrency and using blockchain to streamline the burdensome paperwork of intermediaries, a consortium of Lloyd’s of London syndicates backing cryptocurrency-native, on-chain insurance shows how far the industry has come in the last two years.

“We’re enabling people using public blockchain infrastructure to interact with traditional, highly regulated, fiat-backed institutions in a transparent way,” Evertas CEO J. Gdanski said in an interview. “Whether it’s paying in USDC or native cryptocurrency, or placing policies entirely on-chain with blockchain helping coordinate between a broker, the policyholder, and insurers, we believe this is a foundational infrastructure.”

Nayms, a digital marketplace where brokers and underwriters connect with crypto capital investment, is a play on Lloyd’s “names,” the collection of individuals and companies that underwrite risks in the historic insurance market.

“The native cryptocurrency expertise we bring to the underwriting process gives us a deep understanding of the risks we insure,” Nick Selby, the company’s head of European underwriting, said in an interview. “It means we’re very explicit about what we do and don’t cover, and we can pay insured claims faster than anyone else.”

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Ethereum

10 Years of Crypto Innovations! Here’s How Buterin Sees the Future of Ethereum!

Published

6 months ago

31 July, 2024

BlockChainGuardian Staff

10 Years of Crypto Innovations! Here’s How Buterin Sees the Future of Ethereum!

2h45 ▪ 3 min read ▪ by Eddy S.

At the EDCON2024 conference, Vitalik Buterin unveiled the future directions of Ethereum, with a focus on innovative application development and wallet security. He presented promising projects and innovative ideas to improve privacy and accessibility for cryptocurrency users.

Ethereum’s new innovations by Vitalik Buterin!

Vitalik Buterin delivered a key speech on the future of Ethereum in the next ten years. He stressed that the priority of the crypto blockchain will now be to develop applications. Some of the already successful applications include decentralized finance (DeFi), decentralized identities (DID) with the Ethereum Name Service (ENS), DAOs and NFTs.

Vitalik also highlighted several promising projects. These include the prediction market Polymarket, the social media aggregator Firefly, the wallet Daimo, and the voting tool Rarimo. These applications illustrate the diversity and potential of Ethereum-based technologies to transform various sectors of crypto.

Vitalik also proposed several innovative ideas to improve the security and accessibility of Ethereum wallets. One of his proposals is to encrypt the private key directly into the cell phone’s chip! Thus turning the phone into a secure crypto wallet. Another idea is to place part of the private key in a regulatory-compliant custodial institution, thus providing an additional layer of security.

Vitalik also mentioned the use of zero-knowledge (ZK) proof technology to link KYC information to the wallet. This approach would ensure the privacy of cryptocurrency users while meeting regulatory requirements.

Security and Privacy: Two Requirements for Cryptocurrency Users

These proposals aim to improve the security and privacy of cryptocurrency users while facilitating the adoption of the technology by a wider audience. By combining technological innovations with practical applications, Ethereum continues to position itself as a leader in the cryptocurrency and blockchain ecosystem.

Vitalik Buterin’s speech highlighted Ethereum’s many advancements and future prospects. With a focus on application development and innovative proposals for crypto wallet security, Ethereum is well-positioned to continue to grow and innovate in the years to come.

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Avatar of Eddy S.

Eddy S.

The world is changing and adaptation is the best weapon to survive in this undulating universe. Originally a crypto community manager, I am interested in everything that is closely or remotely related to blockchain and its derivatives. To share my experience and promote a field that fascinates me, there is nothing better than writing informative and relaxed articles.

DISCLAIMER

The views, thoughts and opinions expressed in this article are solely those of the author and should not be considered investment advice. Do your own research before making any investment decision.

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