Top news this week
US lawmakers filed the ‘SEC Stabilization Act’ to fire Gary Gensler
United States Representative Warren Davidson introduced the “SEC Stabilization Act” in the House of Representatives. One of the main provisions of the law is to fire Securities and Exchange Commission (SEC) Chairman Gary Gensler. The bill would remove Gensler from office and redistribute power between the SEC chairman and commissioners. It would also add a sixth commissioner to the agency, make it impossible for any party to hold a majority on the commission and create the position of executive director. The SEC declined to comment on the matter.
BlackRock files for spot bitcoin ETF – first in US if approved
BlackRock, the largest investment company in the world, filed for Bitcoin Spot Exchange Traded Fund (ETF). It would be the first crypto spot ETF in the United States if approved. According to the filing, Coinbase Custody Trust Company would be the custodian of the fund and Bank of New York Mellon would custodian of its fiat. The SEC has yet to approve a spot bitcoin ETF despite many applicants. Worldly the first traded bitcoin ETF was a Canadian purpose-built Bitcoin ETF, established in early 2021.
Binance CEO Changpeng Zhao denies rumors of Bitcoin sale to boost BNB
Binance CEO Changpeng “CZ” Zhao denied allegations that Binance is secretly selling Bitcoin (BTC) to artificially stabilize the price of its BNB token. Rumors have come in the past few days from several market commentators accusing the exchange of deliberately manipulating the market to artificially inflate the value of BNB. CZ said that Binance has not sold any of its BTC or BNB, adding that the crypto exchange still holds a “bag” of FTX Tokens – the native token of the now-defunct FTX crypto exchange.
SEC’s Gensler says BTC, ETH ‘not securities’ in newly released video.
A newly released 2018 video of Gary Gensler has surfaced on social media, again showing how he is now the chairman of the US securities regulator. stating that multiple cryptocurrencies are not securities. “More than 70% of the crypto market is bitcoin, ether, litecoin, bitcoin cash. Why did I name the four? They are not securities,” Gensler says in a video believed to be from a 2018 Bloomberg event for institutional investors. At the time, Gensler was a professor at the Massachusetts Institute of Technology. The video contrasts with his recent actions as SEC chairman.
Binance.US hires ex-SEC enforcement officer amid lawsuit
Former SEC enforcement officer George Canellos was reportedly hired by Binance.US as part of the legal team defending the company against allegations that it operates as an unregistered stock exchange. In response to the SEC action on June 5, Binance.US announced a suspension of US dollar deposits and a potential suspension of fiat withdrawals, citing “extremely aggressive and intimidating tactics” by regulators. On Twitter, the former SEC chief said the exchange was “clearly preparing for prosecution and continues to hire the best defense attorneys in the world.”
Winners and losers
Among the top 100 cryptocurrencies, the top three altcoin gainers of the week are KuCoin Token (KCS) at 9.75%, Maker (MKR) to 8.08% and Quant (QNT) to 4.10%.
The three biggest altcoin losers of the week are EOS (EOS) to -29.88%, ApeCoin (MONKEY) at -26.07% and flow (FLOW) to -25.93%.
For more information on cryptocurrency prices, be sure to read on Cointelegraph Market Analysis.
Most memorable quote
“Inflation is moving in the right direction, but Jerome Powell’s comments suggest that rates could stay higher for longer, putting Bitcoin on the back foot.”
Josh GilbertMarket Analyst at eToro
“Requiring a DEX to register in the same way as a national stock exchange is impossible.”
Paul Grewalchief legal officer of Coinbase
“America’s capital markets must be protected from a tyrannical chairman, including the current one. It’s time for real reform and to fire Gary Gensler as SEC Chairman.
Warren Davidsonrepresentative of the United States
“The addressable market for digitizing the world’s assets and securely transferring value over the Internet is greater than the sum of the entire value of all existing assets.”
Emin Gun SirerCEO of Ava Labs
“The banking system is failing. The old financial system is failing. […] Nothing works. Only bitcoin works.”
Samson MowCEO Jan3
“More than 70% of the crypto market is bitcoin, ether, litecoin, bitcoin cash. Why did I name the four? They are not securities.”
Gary Genslerchairman of the US Securities and Exchange Commission
Forecast of the week
Bitcoin price moderates decline as traders look for support at $24.5k
bitcoin found lost ground again by the end of the week as markets were shaken by mixed macro signals from the United States.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD circling $26,000 on June 16 after bouncing back over $1,000 from the previous day’s lows, falling below $25,000 for the first time in three months. The 4% drop came as the Federal Reserve on hold on interest rates but signaled another hike would come later this year.
In the short time frames for BTC/USD, traders remain cautious due to the risk of further downside. “Still in an area of interest, but we need to hold above $24.5k to avoid a cascade to $23k,” wrote Michaël van de Poppe, founder and CEO of trading firm Eight.
FUD of the week
Curve pool imbalance worries USDT depeg, Tether CTO calls it FUD
Stable coin Tether (USDT) slightly deviated from its peg to the US dollar on June 15 due to an imbalance in Curve’s 3pool. The price of USDT fell 0.3% to around 0.997 as its weight in the Curve 3pool increased to over 70% from the usual 33.1%. A significant increase in the weight of the stablecoin in the pool indicates a large sale of this asset. Tether’s Chief Technology Officer, Paolo Ardoino, assured on Twitter that depeg has nothing to fear and is ready to redeem any amount.
Leaders of the decentralized autonomous organization managing the ApeCoin ecosystem have been criticized by community members for what they described as “crazy” salaries. Organisational scheme reported salaries ranging from $7,000 to $75,000 per month, which shocked some members of the community and raised a lot of questions from others. According to the board member, the remuneration is commensurate with the “responsibility and responsibilities of the role”.
‘Who the hell’ is Prometheum and what did he tell Congress about SEC compliance?
Relatively under-the-radar crypto company Prometheum has come into the spotlight following its co-founder Aaron Kaplan’s recent testimony before a US House of Representatives committee debating the clarity of cryptocurrency regulation. Chaplain’s Testimony advocated regulating cryptocurrencies under current securities laws — a view also shared by the SEC. He argued that several frameworks provided by the SEC “clearly laid out” a “compatible path forward for crypto,” adding that those arguing for new crypto-specific laws “are simply not willing to comply.”
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