Weekly Crypto Roundup: What You Need to Know!
Here are the latest updates in the cryptocurrency space this week that you should be aware of:
VanEck Files for Solana (SOL) ETF 📈
VanEck has submitted an S-1 form to the SEC to introduce a spot-Solana exchange-traded product (ETP). This move is a significant development in the crypto ETF realm. The proposed trust’s objective is to mirror the price of Solana (SOL) by holding the actual cryptocurrency. While the filing has been made, specific operational details like custody and sponsor fees are yet to be disclosed. Notably, the trust will refrain from staking its assets. Following the announcement, SOL experienced an approximate 8% surge in trading.
- Risk Disclosures and SEC Review: VanEck’s filing includes various risk disclosures, such as Solana’s concentrated ownership and potential network risks. However, the SEC has not initiated the official review process for this application yet. An analyst suggested that assuming prompt filing under 19b-4, the SEC could decide on this ETF by March 2025.
- Regulatory Hurdles: Given the SEC’s current view of Solana as an unregistered security, approval for this application seems improbable without substantial regulatory amendments. The approval process for spot-crypto ETPs by the SEC typically involves several steps, including the launch of regulated futures and spot-based ETPs, criteria Solana has not yet met.
EU’s MiCA Framework Implementation 🇪🇺
The European Union’s Markets in Crypto Assets (MiCA) framework becomes effective on June 30. This legislation will introduce new regulatory obligations for crypto businesses, notably impacting stablecoin issuers. According to Article 23, companies must halt issuing stablecoins for transactions exceeding 1 million or surpassing a daily value of 200 million euros.
- License Mandate: The framework necessitates e-money licenses for stablecoin issuers to operate legally within the EU. Yet, major players like Circle and Tether have not secured these licenses. While the European Banking Authority (EBA) has published technical standards guidelines, the regulatory environment remains uncertain.
- Industry Response: Exchanges like OKX and Bitstamp have already delisted Tether’s EURT stablecoin, with Binance set to limit unapproved stablecoins for European users next week. Despite these regulatory challenges, MiCA aims to bring transparency and enhance a stable business environment. The framework will partially apply from Monday, with full compliance expected by the year-end.
Paradigm Introduces Production-Ready Reth Release 🚀
On June 26, Paradigm revealed the first production-ready version of Reth, an Ethereum execution client built in Rust. Following two years of development, Reth is now accessible for node operators at scale, offering faster synchronization times and reduced storage needs compared to existing clients.
- Key Metrics: Reth boasts a 50-hour genesis sync time and requires approximately 2.25TB of storage for an archive node. The forthcoming major release will focus on enhancing usability for optimistic rollups and incorporating modifications for Ethereum’s upcoming update, Pectra.
- Growth Potential: While Reth is among the least adopted Ethereum execution clients, its unique optimizations and swift feature integration position it favorably for future expansion. However, the rapid development pace raises the risk of potential bugs and misuse.
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