SEC Chair Gary Gensler recently highlighted the evasion of registration requirements by certain entities within the cryptocurrency industry.
In remarks prepared for a Columbia Law School event on March 22, Gensler emphasized the importance of transparency and regulatory compliance, invoking the words of Supreme Court Justice Louis Brandeis: “Sunlight is said to be the best of disinfectants.”
Gensler criticized the reluctance of some crypto market participants to adhere to the SEC’s disclosure regulations, pointing out that such avoidance leads to a lack of mandatory disclosure.
“There still are those who would like to whittle away at the SEC’s disclosure regime,” he remarked. Highlighting the opacity within the crypto sector, Gensler added, “There are participants in crypto securities markets that seek to avoid these registration requirements.
No registration means no mandatory disclosure. Many would agree that the crypto markets could use a little disinfectant.”
This stern critique comes amid the SEC’s active enforcement actions against prominent cryptocurrency companies, including Kraken, Binance, Ripple, and Coinbase.
The ongoing legal battles and the demand from crypto businesses and advocacy groups for clearer regulations underscore the tension between innovation and regulatory compliance in the United States.
Moreover, the SEC’s efforts to bring cryptocurrencies under its regulatory scope have intensified, with moves to potentially classify Ether as a security.
The past two years have seen the SEC making significant strides in approving cryptocurrency-related exchange-traded products (ETPs) for U.S. exchanges.
These advancements include investment vehicles based on ETH and Bitcoin futures, as well as the launch of the first spot BTC exchange-traded funds (ETFs) in January.
Gensler’s comments reflect a broader regulatory initiative to ensure transparency and investor protection in the rapidly evolving crypto industry, amidst calls for a balanced approach that fosters innovation while ensuring market integrity.
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FTX, the cryptocurrency exchange that went bankrupt, is in the process of selling its investment in the artificial intelligence company Anthropic, valued at approximately $1 billion.
This move is part of FTX’s strategy to address its bankruptcy debts, a situation reported by CNBC on March 22.
Anthropic, an AI firm, is currently evaluating potential buyers for FTX’s stake, with a transaction expected to finalize within the next few weeks.
Sources close to the situation, preferring anonymity due to the sensitive nature of the financial discussions, informed CNBC of these developments.
The method of sale involves a special purpose vehicle (SPV), a separate corporate entity created to fulfill legal obligations during insolvency situations, indicative of FTX’s current financial state.
Interestingly, the sources revealed that Saudi Arabian entities have been excluded from the bidding process over national security concerns, although it remains unclear if this exclusion pertains to all Saudi investors or just state-related ones. It’s important to note that the shares in question are “Class B” non-voting shares.
The potential sale follows a decision by the Delaware Bankruptcy Court, where Judge John Dorsey authorized FTX to liquidate its Anthropic shares on February 22.
FTX initially acquired these shares for about $530 million in April 2022, and their value has nearly doubled since, propelled by the surge in generative AI technology, now estimated to be worth around $1 billion.
This development surfaces as FTX’s former CEO, Sam Bankman-Fried, prepares for his sentencing hearing on March 28, after being convicted on seven counts of fraud in November 2023.
Describing Bankman-Fried’s actions, U.S. Attorney Damian Williams stated, “a multibillion-dollar scheme designed to make him the king of crypto,” and highlighted the scale of the fraud as one of the most significant financial deceptions in U.S. history.
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Montenegro’s authorities are set to release Terraform Labs co-founder Do Kwon from prison while his extradition to the United States or South Korea remains undecided.
Kwon, detained for approximately one year, will be released on March 23 but must relinquish his travel documents to ensure he does not leave the country, as reported by Montenegrin news outlet Vijesti on March 22.
This decision by the Council of the Supreme Court precedes a review that may either approve or reject his extradition to South Korea, his homeland.
Kwon’s arrest in Montenegro in March 2023 alongside Han Chang-joon, Terraform Labs’ ex-chief financial officer, was due to the use of counterfeit travel documents.
This arrest was complicated by extradition requests from both the U.S. and South Korea, where Kwon faces charges of fraud, although a final ruling on his extradition has yet to be made.
In the U.S., Kwon would confront eight felony charges filed by prosecutors in March 2023.
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Alternatively, South Korea might indict him for fraud and breaches of capital markets law. The destination of his potential extradition remains uncertain.
The plan involves confiscating Kwon’s South Korean passport, which was set to be revoked in 2022 following Terra’s downfall.
Despite this, Kwon used a falsified Costa Rican passport in Montenegro, claiming it to be genuine, which led to his arrest in 2023.
Additionally, Terraform Labs co-founder Shin Hyun-Seong, also known as Daniel Shin, and others linked to the platform are facing criminal charges for investor fraud.
Following Terra’s collapse in May 2022, Shin remained in South Korea.
The collapse brought significant regulatory attention to the platform and played a part in a broader downturn in the cryptocurrency market.
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Bitcoin investors often crave the excitement of market volatility but usually find the reality less thrilling, especially when a surge in prices is swiftly followed by a sharp downturn.
This often results in forced liquidations of futures contracts, exacerbating the fall in Bitcoin’s value.
The Bitcoin futures market, vital for traders wanting to leverage their positions, grows in significance with its expansion, influencing Bitcoin’s price more markedly.
Recently, the aggregate open interest in Bitcoin futures soared to an all-time high of $36 billion on March 21, a significant increase from $30 billion just two weeks earlier.
Leading the charge, the Chicago Mercantile Exchange (CME) recorded $11.9 billion in open interest, overshadowing the inflow to U.S. spot Bitcoin exchange-traded funds (ETFs) since their launch.
Despite the advent of spot ETFs—which some expected would dampen volatility given their $3 billion average daily trading volume—Bitcoin’s volatility has escalated, contrary to these expectations.
Over the last four weeks, Bitcoin’s 30-day volatility index shot past 80%, the highest in over 15 months, starkly contrasting with the lower volatility seen in traditional markets and even in stocks known for their unpredictability.
This heightened volatility was highlighted by a dramatic price correction on March 19, followed by a significant recovery the next day, leading to substantial liquidations in the futures market.
Such volatility not only affects traders but also impacts the general perception of Bitcoin’s risk and its market trajectory.
READ MORE: Bitcoin Rallies Amid Fed’s Interest Rate Decision, Showcasing Resilience Against ETF Outflows
The futures market serves as a double-edged sword, offering opportunities for leveraged positions but also presenting risks of sharp corrections and liquidations.
This dynamic can lead to short-term buying pressure if the market reverses from bearish bets, contributing to the observed volatility.
Some analysts point to excessive leverage or market manipulation as causes, with instances where market movements in related sectors seemingly coincide with major Bitcoin price shifts, though the motivations behind such movements remain speculative.
To understand the impact of futures on Bitcoin’s price, examining the premium on monthly contracts is crucial.
These contracts, favored by professional traders for their lack of a funding rate, command a significant premium over spot prices, reflecting market sentiment.
Despite a recent price dip, the sustained high premium on futures contracts indicates a bullish stance among traders, yet the risk of forced liquidations looms large, especially with the substantial open interest in the market.
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The United States Department of Justice (DOJ) has filed a significant antitrust lawsuit against Apple, accusing the technology behemoth of employing its app market regulations to illegally suppress competition and stifle innovation.
Filed on March 21 in a New Jersey federal court, and supported by 16 state attorney generals, the lawsuit claims that Apple maintains a monopolistic position in the smartphone market.
This, the DOJ contends, allows Apple to coerce developers into exclusively using its payment system, thereby locking in developers and users to its platform.
Central to the DOJ’s accusations are Apple’s App Store guidelines and developer agreements, which are criticized for their complex and variable rules.
These restrictions, according to the DOJ, enable Apple to charge excessive fees, hinder innovation, compromise user experience security, and limit competitive alternatives.
The lawsuit suggests that such practices notably restrict the functionality of crypto-based apps on iOS devices, impacting competition not only in the smartphone sector but also in financial services and other industries.
The DOJ specifically criticizes Apple for excluding alternative payment systems in a manner deemed anticompetitive and exclusionary.
Highlighting the controversial 30% commission, often referred to as the “Apple tax” on apps and in-app purchases, the complaint outlines how this policy and Apple’s fiat-only payment systems effectively block the integration of cryptocurrencies into apps, rendering it economically unfeasible for crypto-based applications to offer in-app purchases.
Additionally, the complaint notes that while Apple permits certain customers to distribute apps through custom app stores, it restricts iPhone users and developers from accessing these alternatives.
This restriction aims to protect Apple’s revenue from its App Store fees.
The DOJ accuses Apple of inconsistently enforcing its App Store rules to penalize developers leveraging technologies that could challenge Apple’s market dominance.
Specific examples include the disabling of functionalities in nonfungible token (NFT) marketplaces like OpenSea, and the social app Damus being forced to remove a Bitcoin tipping feature after Apple removed it from the App Store for circumventing its payment system.
Moreover, the DOJ alleges that Apple’s control extends to web apps, as it mandates the use of its WebKit engine for all iOS web browsers, further restricting competition.
In defense, an Apple spokesperson refuted the DOJ’s allegations, asserting the lawsuit is baseless and vowing to “vigorously defend against it.”
Apple argues that the lawsuit threatens to give the government undue influence over technology design, potentially compromising user privacy and security.
This defense comes as Apple faces pressure from regulations like the European Union’s Digital Markets Act, which mandates offering alternative browser engines and app stores, despite Apple’s concerns for user safety.
Following the lawsuit’s announcement, Apple’s stock price dropped by 4% to around $171, with no significant recovery in after-hours trading, as reported by Google Finance.
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The United States Securities and Exchange Commission (SEC) has decided to postpone its verdict on the introduction of spot Ether exchange-traded funds (ETFs) proposed by Hashdex and ARK 21Shares.
The delay, announced on March 19, occurred shortly before the SEC’s third and final deadline for these applications, setting the stage for a conclusive decision in late May.
The SEC has scheduled May 24 for its final determination on ARK 21Shares’ application and May 30 for Hashdex’s, marking a critical period for the future of Ether ETFs.
This postponement reflects growing skepticism among analysts about the approval prospects for the eight Ether ETF proposals currently on the table from major firms including BlackRock, Grayscale, Fidelity, Invesco Galaxy, VanEck, Hashdex, and Franklin Templeton.
Bloomberg ETF analyst James Seyffart expressed a shift in optimism on March 19, citing a notable decrease in engagement between the SEC and the ETF issuers, leading him to anticipate likely denials of the applications by May 23.
Similarly, analyst Eric Balchunas adjusted the approval probability for Ether ETFs downward to 35%, highlighting a contrast in the SEC’s approach compared to the spot Bitcoin ETF applications, which experienced more open communication.
The public’s confidence in the approval of Ether ETFs by the end of May has also waned, as indicated by Polymarket odds which have fallen to 32% from January’s more hopeful 77%.
Polymarket, a decentralized betting platform, has seen around $2.2 million wagered on the outcome of these ETF decisions.
In a related development, Grayscale is exploring the addition of staking capabilities to its Ether ETF application.
Through a consent solicitation statement to Grayscale Ethereum Trust investors, the firm proposed enabling the trust to engage in proof-of-stake validation protocols, potentially providing consideration for the benefit of shareholders.
This move aims to counteract inflationary pressures from Ethereum’s proof-of-stake protocol and keep pace with competing products offering staking.
The proposals, requiring approval from over 50% of shareholders, could position Grayscale alongside ARK 21Shares, Franklin Templeton, and Fidelity, who have recently incorporated Ether staking into their ETF offerings.
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Starbucks has announced the discontinuation of its NFT rewards initiative, the “Odyssey Beta program,” slated to end on March 31.
This unique program engaged customers with coffee-themed games and challenges, rewarding them with digital collectible stamps as non-fungible tokens (NFTs).
These NFTs offered exclusive benefits and interactive experiences.
With the closure, the marketplace for trading these digital stamps and the company’s community discord server will also be discontinued.
Nevertheless, the Odyssey marketplace will pivot to the Nifty marketplace, allowing the ongoing trade and transfer of Odyssey stamps.
This termination aligns with Starbucks’ broader strategic shifts, although specific reasons for the program’s end were not disclosed.
The company hinted at preparing for future developments in their statement, indicating a strategic realignment.
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Launched amidst a tumultuous period for the cryptocurrency sector in September 2022, the Odyssey program was a foray into the NFT world during a time marked by significant downturns in the crypto industry, including the collapses within the Terra-Luna ecosystem and the challenges faced by Celsius and FTX.
Starbucks chose the Polygon network for its lower energy consumption, showcasing a preference for sustainability in its digital endeavors.
The decision by Starbucks reflects a growing trend among corporations to step back from NFT ventures. Notable examples include GameStop’s withdrawal from its NFT marketplace and Meta’s (formerly Facebook) cessation of NFT features on its platforms.
More recently, X (formerly Twitter) eliminated the option for premium users to showcase NFT images as profile pictures.
As the NFT market continues to evolve, industry leaders offer optimistic forecasts for its potential in 2024. Vineet Budki, CEO of Cypher Capital, predicts a shift towards NFTs serving practical, real-world applications.
Similarly, Oh Thongsrinoon of Altava Group envisions NFTs breaking out from their current digital confines into tangible sectors like precious metals and real estate.
Amidst these developments, the NFT market has shown signs of revival, with a significant uptick in trading volume and record-breaking sales on the Bitcoin network, highlighting a renewed interest and the dynamic nature of this digital asset class.
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Nick Johnson, the brain behind Ethereum Name Service (ENS), embarked on this project with uncertain financial requirements.
To his surprise, Vitalik Buterin, co-founder of Ethereum, granted him twice the amount he requested from the Ethereum Foundation.
This pivotal moment was discussed by Johnson during an exclusive interview with Cointelegraph at ETHGlobal in London.
He delved into the inception and evolution of ENS, a service enabling the creation of human-readable Web3 addresses.
These addresses serve multiple purposes: as a Web3 wallet for cryptocurrencies and non-fungible tokens (NFTs), and as a domain for decentralized websites.
Before his venture into the blockchain world, Johnson, originally from New Zealand, contributed his expertise to Google.
His journey into cryptocurrency began with Bitcoin, but he quickly gravitated towards Ethereum, attracted by its programmability.
He noted, “I learned about Bitcoin not long after it came out. I initially thought this was really cool, but then I realized it is just money.
“There’s no programmability here.” With a robust background in infrastructure, tooling, and libraries, Johnson leveraged his skills to develop his own Ethereum strings library, essential for string manipulation in coding.
Johnson’s talent caught the attention of the Ethereum Foundation, which brought him onboard to tackle an existing gap in their infrastructure through the development of the name service.
This project initially commenced within the EthSwarm team but continued to flourish as Johnson transitioned to the Go Ethereum team, eventually becoming his primary focus.
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The establishment of ENS as a separate organization was propelled by a significant grant from the Ethereum Foundation, aimed at supporting a two-year roadmap.
Buterin’s intervention to double the initial grant ensured the project’s sustainability and growth.
Johnson reminisced, “They took it to Vitalik, and he said, ‘No, that’s not nearly enough, take twice as much.’ That’s how it started. If he hadn’t got involved, ENS would have sputtered and failed.”
Since its launch, ENS has seen over two million addresses registered.
However, Johnson values the quality of user engagement over mere numbers, wishing to measure the utility of ENS addresses in crypto transactions more accurately.
Despite the challenges in gauging direct metrics, Johnson is optimistic about ENS’s expansion and its adoption on various networks to enhance Web3 utility.
Looking forward, ENS plans to integrate with Ethereum layer-2 solutions, aiming to become more user-friendly and accessible.
This strategic direction underscores Johnson’s commitment to bringing ENS closer to users and improving overall usability within the Web3 space.
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On March 21, Bitcoin maintained its upward trajectory, buoyed by a quick recovery that delivered a 12% increase in its price.
This uptick followed a period of consolidation within a tight range, sparked by a favorable response to comments made by the United States Federal Reserve, which opted to keep interest rates steady.
The Federal Reserve’s decision came after the Federal Open Market Committee (FOMC) meeting, with Chair Jerome Powell indicating potential rate cuts later in the year.
He stated it would be “appropriate” to initiate such cuts once there was greater confidence in inflation moving sustainably towards the 2% target.
A press release underscored this stance, emphasizing patience until there’s more certainty about the inflation trajectory.
This development helped Bitcoin avoid a drop below the $60,000 support level, propelling it to $68,000 and negating its recent losses.
The sentiment was encapsulated by a popular trader, Jelle, on X (formerly Twitter), who highlighted the importance of staying above $65,300 for Bitcoin to potentially revisit its 2021 cycle highs.
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This surge inflicted significant losses on short sellers, with CoinGlass reporting $70 million in short BTC liquidations on March 20.
Despite new withdrawals from U.S. spot Bitcoin exchange-traded funds (ETFs), market morale remained strong.
Farside, a UK investment firm, noted that $261 million exited new ETF products on March 20, largely due to $386 million in outflows from the Grayscale Bitcoin Trust (GBTC), even as other ETFs experienced inflows.
Market commentators expressed optimism amidst these developments. Dyme, a well-regarded voice, observed Bitcoin’s resilience against the backdrop of ETF outflows, suggesting the market’s independence from ETF movements.
Similarly, Samson Mow, CEO of crypto adoption firm Jan3, opined that ETF outflows would inevitably reverse, encouraging investors to plan with this future shift in mind.
These perspectives underscore a growing belief in Bitcoin’s enduring appeal and its capacity to withstand market fluctuations.
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Ether‘s price is on track for a significant increase, potentially hitting the $5,400 mark in 2024, according to a well-regarded technical indicator.
This prediction comes from an analysis using the Mayer multiple oscillator, which compares Ether’s current price to its 200-day moving average.
This insight, provided by CryptoQuant-verified author Binhdangg, was shared in a post on March 21.
The Mayer multiple oscillator indicates that Ether might not only reach but possibly exceed $5,400 in a high-risk scenario.
Bitfinex analysts have elaborated on this projection, stating, “We expect it to reach oversold condition this year based on the fact that there is a cyclical behavior of the asset to oscillate between the overbought and oversold bands of the indicator.
However, this is a dynamic moving average-based deviation, and the upper band may be far above the $5,400 level by the time the price reaches those levels.”
Presently, Ether is trading above $3,500, marking a 27% gap from its all-time high of $4,891 recorded on November 16, 2021, as per CoinMarketCap data.
Market sentiment is increasingly optimistic, with over 62% of participants now expecting Ether to revisit its all-time high within 2024, a significant jump from 45% just a month prior, based on Polymarket odds.
The anticipation surrounding Ether’s value is also buoyed by the potential impacts of the Dencun upgrade on the ETH/BTC ratio, hinting at a possible climb to $5,900 for Ether, considering the current BTC market price. Bitfinex analysts suggest that the BTC price could rise by the time Ether reaches this significant level.
A crucial factor that might influence Ether’s price trajectory in the short to medium term is the potential approval of a spot Ether exchange-traded fund (ETF).
This event is highly anticipated but comes with uncertainties regarding regulatory scrutiny, especially from the SEC. John Lo, founder of Recharge Capital, noted that the approval process for an Ether ETF might face more challenges compared to previous Bitcoin ETF approvals.
The SEC has delayed its decisions on ETF applications from VanEck, Hashdex, and ARK 21Shares, with final decisions expected by late May.
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