- Bitcoin went back up to over $63,000 on Monday after falling below $60,000 last week.
- The U.S. SEC sued a blockchain company called Consensys over its MetaMask crypto wallet.
- Coinbase, a major crypto exchange, sued the SEC and FDIC to get information about their decisions on cryptocurrencies.
- Investment firm VanEck applied for a Solana ETF (a type of investment fund).
Bitcoin went back up to over $63,000 on Monday after dropping below $60,000 last week. The dip happened because people got nervous when the old crypto exchange Mt. Gox said it would return assets to customers after being hacked years ago.
There was also a lot of legal news about cryptocurrencies last week. The U.S. SEC sued a company called Consensys for offering securities through its MetaMask crypto wallet. At the same time, Coinbase sued the SEC and FDIC to get information about their crypto decisions.
On a positive note, investment firm VanEck believes that crypto regulations in the U.S. will get better, so they have applied to start a Solana ETF (a type of investment fund).
SEC Sues Consensys
The SEC has sued Consensys, claiming the company has been acting as an unregistered broker and selling securities without registration through its MetaMask crypto wallet since 2020. The lawsuit, filed on June 28th, says Consensys made over $250 million in fees from these unregistered services.
The SEC wants to stop Consensys permanently, impose fines, and seek other legal actions for breaking federal securities laws.
In response, Consensys stated, “The SEC is aggressively targeting crypto with random enforcement. This lawsuit is just another example of their attempt to change established legal rules and expand their control.”
This isn’t the first time Consensys and the SEC have clashed. Earlier, in April, Consensys sued the SEC over a notice about whether Ethereum’s cryptocurrency (ETH) is considered a security.
Coinbase Files New Lawsuits Against SEC and FDIC
Coinbase has sued the SEC and the FDIC because they didn’t provide information on past crypto investigations that Coinbase requested. This happens while the SEC is already suing Coinbase for allegedly operating as an unregistered securities exchange.
Coinbase claims the SEC and FDIC ignored their requests for important details, including the SEC’s opinion on Ethereum’s switch to proof-of-stake and information from closed crypto investigations. They also accuse the FDIC of trying to cut off the crypto industry from banking services.
VanEck Files for Solana ETF
On Thursday, VanEck applied for a Solana (SOL) ETF. They want to be first in line for SEC review, as early submissions often get priority. Even though there is some doubt about the SEC approving it because Solana has been called a security in past lawsuits, VanEck’s Head of Digital Assets Research, Matt Sigel, believes this is the right time to try due to improving crypto regulations.
Sigel notes recent legislative progress and the SEC’s approval of spot ether ETFs as signs that the situation is getting better. Some experts think the ETF won’t be approved because Solana doesn’t have futures trading, but Sigel argues this isn’t necessary. He says market monitoring can be done through other methods, like information-sharing agreements, similar to BlackRock’s bitcoin ETF.
Solana has become popular for launching meme coins and tokens backed by celebrities. Following VanEck’s move, 21Shares also applied for their own Solana ETF.
What to Expect in the Markets This Week
This week, everyone is watching bitcoin prices closely after a lot of ups and downs last week. People are also waiting for the SEC’s final decision on ether ETFs.
There’s a lot of focus on crypto regulations, especially after the U.S. Supreme Court’s recent rulings. Last week, the Supreme Court voted 6-3 to overturn the Chevron precedent, which allowed federal agencies a lot of freedom in interpreting laws. This change could be very important for the crypto world.
According to Austin Campbell, founder of Zero Knowledge Consulting, this ruling means regulatory bodies like the SEC, Commodities Futures Trading Commission (CFTC), and banking regulators will now have to follow written rules more strictly. This should make things more stable for the crypto industry and might push Congress to clarify laws, giving more legal certainty. The crypto industry has often criticized the SEC for not providing clear guidelines on how to operate legally in the U.S.