SEC sues Consensys, MiCA goes live, VanEck files first-ever Solana ETF | Weekly Recap

As a seasoned crypto investor with a keen eye on regulatory developments and market trends, I find today’s weekly recap an intriguing mix of both positive and negative news. The SEC’s lawsuit against Consensys is disheartening, as it seems to add another layer of uncertainty for Ethereum developers and users. However, the launch of MiCA in Europe and the first-ever Solana ETF filing in the U.S. are promising signs of regulatory progress and institutional adoption.

As a researcher studying the latest developments in the cryptocurrency space, I’d like to share some notable updates from the past week:

  • In the U.S., the securities regulator filed a lawsuit against Ethereum development firm Consensys over its staking and wallet services on MetaMask. The lawsuit came up shortly after the SEC closed its investigation into Ethereum 2.0.
  • America’s largest exchange Coinbase sued the SEC and the FDIC for failing to comply with its FOIA demand. Coinbase is seeking clarity on several issues, including the SEC’s position on whether Ethereum is a security.
  • While industry leaders bemoaned regulatory uncertainty in the U.S., the European Union implemented a phased launch of MiCA on June 30. The stablecoin aspect of the regulation will take effect from the beginning of July.
  • However, a positive shift was observed on June 25, when the Bitcoin ETFs witnessed their first net inflow in a week, totaling $31 million. 
  • The ETF products retained this positive trend for three more days despite the market uncertainty last week. By the end of the week, they had recorded $137 million in cumulative net inflows over four days. However, their weekly flow remained negative.
  • A day later, 21Shares, another top asset manager in the spot crypto ETF race, also filed with the SEC to launch a spot Solana ETF dubbed the 21Shares Core Solana ETF.
  • In South Korea, the Institute of Finance stressed that crypto ETFs could pose a risk to the country’s economy. The agency warned that the products could trigger a shift in capital from assets that are capable of generating cash flow.
  • Before the presidential debate last week, Moe Vela, a former advisor to Biden, stressed that the event might not feature any crypto-related questions. However, Vela noted he believes at least one candidate could discuss crypto during the event.
    Despite the speculation, especially with Trump constantly warming up to the crypto community, neither Bitcoin nor the crypto industry secured a mention in the debate. Interestingly, BTC increased to $62,000 following the event. 
  • Following the debate, which involved a supposedly disappointing performance from President Joe Biden, data from Polymarket, a decentralized prediction resource, suggested there was a 35% chance Biden could withdraw from the race. 
    Jesse Powell, former CEO and founder of American exchange Kraken, disclosed a donation of $1 million in crypto to the Trump campaign in support of the GOP candidate.

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2024-06-30 18:19