On Thursday, the SEC made history by approving eight spot Ethereum ETFs from major institutions such as BlackRock, Franklin Templeton, Fidelity, and VanEck. Although these approvals mark a significant regulatory shift, trading can't begin until the S-1 registration statements are approved, which could take several weeks. These ETFs are anticipated to draw billions in capital, increasing institutional interest in cryptocurrencies. However, the next few weeks to months might be a quiet period before significant market activity ensues.
Also on Thursday, the U.S. House of Representatives passed the CBDC Anti-Surveillance State Act, preventing the Federal Reserve from issuing a central bank digital currency without Congressional consent. The bill, backed by 213 Republicans and 3 Democrats, aims to ensure any U.S. CBDC aligns with privacy values and free-market principles, addressing concerns about potential threats to individual freedoms.
Additionally, the House passed the Financial Innovation and Technology for the 21st Century Act (FIT21), granting regulatory authority over the digital assets market to both the CFTC and the SEC. Both bills are now headed to the Senate, representing key developments in U.S. crypto regulation.
In other news, Solana DEX aggregator Jupiter announced its Grand Unified Markets (GUM) initiative, aiming to create a "single atomic market" on Solana. Partnering with the Solana Foundation and market makers like Wintermute and DWF Labs, the GUM Alliance seeks to tokenize various assets, including real estate, forex, stocks, and bonds.
Decentralized social network Farcaster revealed a $150 million fundraising round led by Paradigm, with contributions from a16z, Haun Ventures, and Union Square. The funds will support user growth and the development of new tools. Farcaster has seen a 50x increase in activity since October, now with nearly 35,000 daily users, despite some issues with spam and bots, indicating strong demand for onchain social media.
Lastly, a U.S. bankruptcy court approved Genesis's Chapter 11 bankruptcy plan, enabling the return of approximately $3 billion in cash and assets to creditors. Genesis, affected by 3AC and FTX, won its case against parent company DCG, which will incur a loss due to the ruling. Gemini, a major creditor, will begin reimbursing customers 97% of their losses from the defunct Gemini Earn program by the end of the month, signaling the end of the last cycle’s turmoil.
May 2024, Cryptoniteuae