Markets
Bitcoin rises above $63,000 again
Main conclusions
- Bitcoin surged above $63,000 again on Monday after falling below $60,000 last week.
- The US SEC filed a lawsuit last week against blockchain technology startup Consensys related to its offering of securities through its MetaMask cryptocurrency wallet.
- Cryptocurrency exchange Coinbase has filed lawsuits against the SEC and FDIC, seeking information related to the regulators’ decisions related to cryptocurrencies.
- Investment giant VanEck has filed for a Solana ETF.
Bitcoin (BTC) climbed above $63,000 again on Monday after falling below $60,000 last week. The price weakness last week was partly a function of investors becoming nervous as the now-defunct cryptocurrency exchange Mt. Gox announced plans to return assets to its customers after they were hacked nearly a decade ago.
Last week was also full of legal news for cryptocurrencies. The U.S. Securities and Exchange Commission (SEC) has filed charges against blockchain technology company Consensys related to its alleged securities offering through its MetaMask cryptocurrency wallet, while Coinbase (COIN) sued the SEC and Federal Deposit Insurance Corporation (FDIC).
On the brighter side of things, investment manager VanEck is so convinced that the regulatory situation for cryptocurrencies in the US is bound to improve that they have applied for a position at Solana. exchange traded fund (ETF).
SEC sues Consensys
The SEC has filed a lawsuit against Consensys alleging that the company was operating as an unregistered broker-dealer and engaging in the unregistered offer and sale of securities through staking on its cryptocurrency wallet. MetaMask since 2020. According to the complaint filed on June 28, Consensys generated more than $250 million in fees through its unregistered services.
The SEC’s complaint seeks a permanent injunction, civil penalties and other equitable relief against Consensys for violating federal securities laws.
“The SEC has been pursuing an anti-crypto agenda led by ad hoc enforcement action. This is just the latest example of its regulatory overreach — a transparent attempt to redefine well-established legal standards and expand the SEC’s jurisdiction through litigation,” Consensys said in a statement.
This is not the first time the two parties have been involved in a legal fight. In response to an earlier notice from Wells, Consensys sued the SEC in Aprilchallenging the agency to confirm its classification of ether (ETH), which is the underlying cryptocurrency in Ethereumas a guarantee.
Coinbase Files New Lawsuits Against SEC and FDIC
Coinbase has initiated legal proceedings against the SEC and FDIC for failing to comply with its requests for information about previous cryptocurrency investigations. This legal action comes amid a ongoing SEC lawsuit claiming that Coinbase operates as an unregistered securities 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. proof of participation transition and information from closed investigations into crypto entities. Additionally, Coinbase’s complaint against the FDIC highlights alleged efforts to isolate the crypto industry from banking services.
VanEck Registers Solana ETF
On Thursday, VanEck filed an application for a Solana (SUN) ETF. The firm is aiming to be first in line for SEC review of a Solana ETF, considering that early submissions are usually given priority. Despite skepticism about the SEC’s 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 this financial product due to the regulatory conditions for cryptocurrencies becoming more favorable.
To support his theory, Sigel points to recent legislative progress and SEC unexpected approval of spot ether ETFs as indicators of a changing landscape. While some experts doubt the likelihood of approval due to the absence of futures for Solana, 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’s I BITE Bitcoin ETF.
Solana has recently gained a reputation as the preferred launchpad for several meme coins It is celebrity-backed tokens. Following VanEck’s filing, 21Shares also filed 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 are on bitcoin prices this week after much volatility last week.
Much is also expected in terms of cryptocurrency regulation, especially after the recent US Supreme Court decisions.
In a 6-3 vote last week, the Supreme Court found the Chevron precedent unworkable due to its reliance on statutory ambiguity. The court’s decision to overturn the doctrine, which allowed federal agencies significant 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 offered by this decision is crucial for industries like cryptocurrencies, where the SEC, Commodity Futures Trading Commission (CFTC)and banking regulators must now strictly adhere to written rules. This change could also prompt Congress to take a more active role in clarifying laws, ultimately providing greater legal and judicial certainty for the cryptocurrency industry. Notably, the cryptocurrency industry has criticized the SEC for failing to provide clear guidelines on how to operate legally in the U.S.