U.S. Regulators Provide Little Guidance for Crypto Community
This week, U.S. regulators did not offer much information or guidance to the international crypto community. The SEC-approved Ethereum futures ETF from VanEck was confirmed, resulting in modest gains for Ethereum holders. However, compared to their European counterparts, lawmakers in Washington seem to be slow in addressing crypto-related matters due to their focus on a potential government shutdown.
Exploits and High Bounties
The crypto community on Twitter was active throughout the week. It started with news of a $200 million exploit on the Mixin Network decentralized exchange and wallet project. Similarly, the Seychelles-based exchange HTX (formerly Huobi) was also exploited. In response, TRON CEO Justin Sun offered the hackers a high bounty and even a job.
Viewing Computing Power as a National Resource?
Alexander Grieve, a government affairs lead at Paradigm, warned about the dangers of treating computing power as a national resource. Although this has not happened in the U.S., Grieve’s concern arose from an article suggesting that it could be explored by lawmakers. He highlighted potential political and media pressure that could be exerted on cloud service providers serving large crypto industry players.
Crypto Influencer Arrested and Financial Speculation
Crypto influencer Ben Armstrong (formerly known as BitBoy) was doxxed by ZachXBT after being arrested for loitering at a former business partner’s house during his livestream. Additionally, crypto analyst Adam Cochran speculated about TRON CEO Justin Sun’s financial situation, drawing parallels to last year’s collapse of seemingly solvent crypto companies.
SEC Delays Bitcoin ETF Applications
Bloomberg ETF analyst James Seyffert observed the SEC’s further delays in reviewing pending Bitcoin ETF applications. This may impact the possibility of an ETF approval this year, and Seyffert suggested that delays could affect other filings as well.
Grilled Gensler and Binance’s Russian Arm
Twitter users shared videos of SEC Chair Gary Gensler being questioned by the House Financial Services Committee. One notable moment was when he struggled to answer whether tokenized collectibles are securities. Meanwhile, Binance announced the liquidation of its Russian arm, prompting CEO Changpeng Zhao to clarify details on Twitter.
The Binance—Russia Connection
Adam Cochran delved into a 25-tweet thread exploring potential connections between Binance, Russia, and Prigozhin—the Russian rebel who led a one-day rebellion against Putin earlier this year. Cochran suggested possible OFAC violations and money laundering by Binance, pointing out the sale of its Russian business to CommEX, which he claimed doesn’t really exist.
Hot Take: U.S. Regulators Lag Behind European Counterparts
Once again, U.S. regulators have failed to provide significant guidance or regulations for the international crypto community. While VanEck’s Ethereum futures ETF gained approval from the SEC, lawmakers in Washington have been preoccupied with other matters. The week saw exploits and high bounties offered by TRON CEO Justin Sun. Additionally, concerns were raised about treating computing power as a national resource and the arrest of crypto influencer Ben Armstrong. The SEC also faced criticism for delaying Bitcoin ETF applications. Lastly, Binance’s decision to liquidate its Russian arm sparked discussions about potential connections and violations. The lack of action from U.S. regulators underscores the lag compared to their European counterparts.
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