Prometheum launches Ether custody service that treats ETH as a security: Report
The digital assets platform soft-launched its controversial Ether custody service on May 17 and is targeting a full launch next month.
The digital assets platform soft-launched its controversial Ether custody service on May 17 and is targeting a full launch next month.
According to Blockworks, the US House of Representatives is set to vote on a significant cryptocurrency market structure bill, the Financial Innovation and Technology for the 21st Century Act (FIT21 Act), this week. The bill, which has already passed through the House Agriculture and Financial Services Committees, is expected to be voted on May 22. The bipartisan legislation has 11 co-sponsors, including Democrats Henry Cuellar of Texas, Wiley Nickel of North Carolina, and Ritchie Torres of New York. The proposed law establishes joint rulemaking powers between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The bill notably gives the CFTC control over digital commodities markets, including exchanges and broker-dealers. It also clarifies how digital assets are classified, stating that the existence of an investment contract alone does not make a token a security. This distinction could impact several ongoing legal disputes between token issuers, crypto exchanges, and the SEC. The co-sponsors of the bill believe that about 70% of all crypto tokens should be classified as commodities rather than securities. However, the bill has faced opposition from some House Democrats who argue that it limits the SEC's power too much. Rep. Jonathan Jackson, D-Ill., proposed an amendment last summer to remove a section of the bill that allows firms who have filed a 'notice of intent to register' to be exempt from certain SEC enforcement actions. Agriculture Committee Chair Glenn Thompson, R-Penn., argued that the 'notice of intent' allows firms to operate in a limited capacity while the potentially lengthy registration approval process is underway. The bill also allows the CFTC to issue enforcement actions against firms who have completed the 'notice of intent' process. Despite the opposition, the bill is likely to pass in the House due to the Republican majority and expected support from some Democrats. Its fate in the Senate, however, is less certain. This vote comes shortly after the US Senate passed Joint Resolution 109, which seeks to invalidate the SEC’s Staff Accounting Bulletin (SAB) 121. The resolution is now awaiting the President's approval, although the Biden Administration has indicated that the President will veto the legislation.
According to BlockBeats, Federal Reserve's Daly stated on May 21 that there is currently no evidence to suggest a need for an increase in interest rates. Daly's comments come amidst ongoing discussions about the state of the economy and potential changes in monetary policy. However, based on the current economic indicators, there seems to be no immediate need for a hike in interest rates. This information is crucial for investors and financial institutions as it can significantly impact their decision-making processes. The Federal Reserve's stance on interest rates often influences the global financial market, and Daly's statement is expected to have a considerable effect on the market's future movements. Despite the ongoing economic uncertainties, the Federal Reserve's current position indicates a stable economic outlook.
If a 19b-4 spot Ether ETF filing is approved, analysts anticipate the SEC won’t immediately sign off on the S-1, which is required for the products to launch.
The Deploying American Blockchains Act of 2023 gives the Commerce Department a role in advancing blockchain technology.
ETF analysts James Seyffart and Eric Balchunas said they had increased their odds of the SEC approving a spot Ether exchange-traded fund from 25% to 75%.
The U.S. president remains the last barrier to recalling the problematic anti-crypto resolution by the SEC.
The legislation, passed out of committee in July 2023, would clarify how the U.S. Commodity Futures Trading Commission and Securities and Exchange Commission handle crypto.
The attorney general’s office filed a lawsuit against Genesis in October 2023 for allegedly defrauding investors through the Gemini Earn program.
Concerns were raised after a Bloomberg article reported Kraken was “actively reviewing” what tokens it could continue to list under the European Union’s upcoming MiCA framework.