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Weekly News Recap | Crypto News

UseTheBitcoin Weekly News Roundup (JUL 1st – JUL 5th, 2024)

Author

Rickie Sanchez

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Reading time

6 mins
Last update

Author

Rickie Sanchez

Tags

Category

Weekly News Recap / Crypto News

Reading time

6 mins
Last update

Author

Rickie Sanchez

Tags

Reading time

6 mins
Last update

Weekly News Roundup

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Stay in the loop with our weekly crypto digest as we get you up to speed on the hottest trends and events in the crypto space.

Here’s what happened in crypto this week:

US SEC Sues Consensys, Says MetaMask Is An Unregistered Securities Broker

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The US Securities and Exchange Commission (SEC) filed a lawsuit against Consensys, MetaMask’s parent company. According to the complaint, the company has been operating as an unregistered broker and engaging in the unregistered offer and sale of securities through MetaMask Swaps since 2020. 

It can be recalled that in April, the company tried to preempt the SEC’s action with its own lawsuit, alleging overreach on the part of the regulator. Consensys said its suit followed three subpoenas issued last year, plus a Wells notice from the SEC that claimed Consensys was violating federal securities laws.

VanEck Files Application For First Solana Spot ETF With The US SEC

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Investment asset management firm and spot Bitcoin ETF issuer VanEck has filed for a Solana spot exchange-traded fund (ETF) with the US SEC. The VanEck Solana Trust is expected to provide direct exposure to SOL, and its shares will be valued on a daily basis using prices drawn from trading platforms selected by MarketVector.

Matthew Sigel, VanEck’s Head of Digital Asset Research, stated that they believe Solana is a commodity and claimed that the cryptocurrency functions similarly to Bitcoin and Ethereum. However, the fact that the SEC views cryptocurrencies other than Bitcoin and Ethereum as securities is seen as the biggest obstacle to ETF approval.

21Shares Files For Solana Spot ETF

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21Shares filed an S-1 application with the US SEC for a Solana spot ETF. The fund will be called the “21Shares Core Solana ETF.” 

This is the second application the SEC has received for a SOL spot ETF, following VanEck’s filing on June 27th. The proposed ETF is slated to trade on the Cboe BZX Exchange, with Coinbase as the custodian for the fund’s Solana holdings.

Judge Says Binance’s BNB Sales Do Not Qualify As Securities

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In a recent ruling by the US District Court for the District of Columbia on the case brought by the US SEC against crypto exchange Binance and its affiliates, the court dismissed several portions of the lawsuit, including some related to Binance coin (BNB) and stablecoin Binance USD (BUSD).

Judge Amy Berman Jackson cited a similar decision from Judge Analissa Torres in the Ripple lawsuit, stating that it is essential to weigh the economic reality of the token transaction while applying the Howey Test.

The judge further added that the government’s reliance on the assertion that “the crypto assets are the embodiment of the investment contract” is insufficient to classify that secondary sale of BNB as an investment contract.

Sony Readies To Launch A Regulated Cryptocurrency Exchange In Japan

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According to a recent press release on PR Times, Japan’s multi-industry conglomerate Sony is preparing to launch a cryptocurrency exchange subsidiary by revamping its local trading platform, WhaleFin, which it acquired last year.

WhaleFin has been renamed to S.BLOX Co., which plans to collaborate with Sony Group’s other businesses to generate additional value for its crypto trading services.

Last year, Sony made a low-key acquisition of Amber Japan (formerly DeCurret). Several news outlets reported that Sony plans to launch a crypto exchange, but Amber Japan continued to operate after Sony acquired it in August 2023.

IRS Finalizes Controversial Crypto Tax Reporting For 2025

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The Internal Revenue Service (IRS) has released the final version of its controversial “broker rule” guidance, the IRS Form 1099-DA, which could later affect non-custodial platforms.

In other words, crypto exchanges will be subject to the new rules, which will go partially into effect in 2025.

However, rules that would have imposed potentially impossible and privacy-invasive reporting and KYC requirements on decentralized protocols are a wait-and-see.

Circle Becomes First Stablecoin Issuer With MiCA Approval

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In a lengthy post on X, Circle co-founder and CEO Jeremy Allaire proudly announced that their company received authorization from France’s Autorité de Contrôle Prudentiel et de Résolution (ACPR) to operate as an e-money issuer.

The European Union (EU) also allowed it to issue USDC and EURC within its jurisdiction upon determining its compliance with the Markets in Crypto-Assets Regulation (MiCA).

Allaire also emphasized how Circle’s compliance with the EU’s stringent regulatory standards has placed them at the forefront of the historic transition. He likewise praised the EU for crafting clear regulations that paved the way for recognizing stablecoins as “legal electronic money.”

Peter Thiel Discusses Bitcoin’s Future And Price Outlook

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Peter Thiel, an American entrepreneur who was more prominent for his tenure as Paypal’s CEO, sat down for a podcast interview with CNBC in the aftermath of the latest US Presidential debate. He suggested that the largest cryptocurrency by market cap could reach new lows.

Thiel continued his FUD-ridden projection by saying, “When people in the FBI tell me that they’d much rather have criminals use Bitcoin than $100 bills, it suggests that maybe it’s not quite working the way it was supposed to.”

Previously, the ex-PayPal CEO expressed some form of regret for not buying as much Bitcoin as he should have. He also chastised known Bitcoin critics Berkshire Hathaway CEO Warren Buffet and JP Morgan CEO Jamie Dimon for their finance gerontocracy a few years ago.

US Marshals Service Announces Partnership With Coinbase To Manage And Dispose Cryptocurrencies

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According to a press release, the US Marshals Service (USMS), a division of the US Department of Justice (DOJ), has chosen Coinbase to safeguard and trade its large-cap digital asset portfolio.

The decision follows a comprehensive competitive due diligence process that evaluated various solutions for managing the agency’s “Class 1” digital assets. The USMS emphasized the necessity of handling these digital assets professionally, lawfully, and policy-compliantly.

The contract comes as a surprise given that Coinbase has been in hot water with the US Securities and Exchange Commission, the regulatory agency that sued the crypto exchange last year for allegedly operating its platform without registering, and is making its way through the courts.

Fundstrat’s Tom Lee Still Sees Bitcoin Hitting $150,000 In 2024

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Tom Lee, the managing partner and head of research at Fundstrat Global Advisors, believes that Bitcoin (BTC) will finish out the year strong. In a recent interview with CNBC, he said Bitcoin could still hit $150,000 in 2024, a more than 137% gain from its current value.

According to Lee, Bitcoin’s price performance will overshadow the ongoing distribution of Mt. Gox funds. It has already achieved a return of over 50% year-to-date. With the Federal Reserve expected to lower its benchmark interest rates later this year amid the contentious general elections, Bitcoin could see further gains.

Polkadot Treasury Spends $37 Million On Marketing In First Half Of 2024

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Polkadot community members are worried that the decentralized autonomous organization (DAO) is overspending on marketing and events.

According to the DAO’s H1 2024 report, Polkadot spent $87 million in the first half of 2024, with $37 million allocated to marketing, advertising, and events.

Meanwhile, $49.4 million covered development, economy, education, operations, and research. Bounties notably accounted for $11.4 million.

Riot Platforms’ Hashrate Booms 50% In June

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Riot Platforms reported its monthly numbers stating that the firm mined 19% more Bitcoin in June. The largest US Bitcoin miner surpassed its May mining activities, generating 255 BTC in June as opposed to 215 BTC in May.

The Bitcoin mining firm also noted that its hash rate has increased by 50% in just one month.

CleanSpark Mined 445 Bitcoin In June, Surpassing Hashrate Target

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Bitcoin miner CleanSpark increased its Bitcoin production by 6.7% in June and surpassed its mid-year hashrate target of 20 exahashes per second (EH/s).

According to the report, the US-based miner only sold 8 of the 445 Bitcoin it mined in June, bringing its total Bitcoin holdings to 6,591 BTC as of June 30th, worth more than $4 billion at current prices.

Marathon Digital Reports Increase In Hashrate, Holds 18,536 BTC

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In June 2024, Marathon Digital reported that its average operational hashrate grew by 2% month-over-month to 26.3 exahash per second (EH/s).

The increase was attributed to operational improvements and the facility’s operation. Marathon’s total Bitcoin holdings now stood at 18,536 BTC, and it stated that it intends to sell a portion of its holdings to support operations and for general corporate purposes.

Final Thoughts

So that’s it for this week!

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Have a fantastic week ahead!