Cryptocurrency Market News: Bitcoin Inches Back Above $63K

Key Takeaways

• Bitcoin has moved above $63,000 again Monday after dipping below $60,000 last week.
• The U.S. SEC filed a lawsuit last week against blockchain technology startup Consensys related to the offering of securities via its MetaMask crypto wallet.
• Crypto exchange Coinbase has filed lawsuits against the SEC and FDIC, seeking information related to the governing bodies’ crypto-related decisions.
• Investment giant VanEck has filed for a spot Solana ETF.

Bitcoin (BTC) has inched up above $63,000 again Monday after dipping below $60,000 last week. The price weakness last week was partly a function of investors getting apprehensive as defunct crypto exchange Mt. Gox announced plans to return assets to its customers after being hacked almost a decade ago.

Last week was also full of legal news for cryptocurrencies. The U.S. Securities and Exchange Commission (SEC) filed charges against blockchain technology firm Consensys related to its alleged offering of securities through its crypto wallet MetaMask, while Coinbase (COIN) sued the SEC and the Federal Deposit Insurance Corporation (FDIC).

On the more positive side of things, investment manager VanEck is so convinced that the regulatory situation for crypto in the U.S. is bound to improve that they’ve filed for a spot Solana exchange-traded fund (ETF).

SEC Sues Consensys

The SEC has filed a lawsuit against Consensys alleging that the company has been operating as an unregistered broker and engaging in the unregistered offer and sale of securities through staking on their crypto-wallet MetaMask since 2020. According to the complaint filed on June 28th, Consensys has generated over $250 million in fees via its unregistered services.

The SEC’s complaint seeks a permanent injunction, civil penalties, and other equitable relief against Consensys for violating federal securities laws.

“The SEC has been pursuing an anti-crypto agenda led by ad hoc enforcement action. This is just the latest example of its regulatory overreach – a transparent attempt to redefine well-established legal standards and expand the SEC’s jurisdiction via lawsuit,” Consensys said in a statement.

This is not the first time the two parties have been engaged in a legal tussle. In response to a prior Wells notice, Consensys sued the SEC in April, challenging the agency to confirm its classification of ether (ETH), which is the underlying cryptocurrency on Ethereum, as a security.

Coinbase Files New Lawsuits Against SEC and FDIC

Coinbase has initiated legal proceedings against the SEC and the FDIC for not fulfilling its requests for information on past crypto investigations. This legal action comes amid an ongoing SEC lawsuit alleging that Coinbase operates as an unregistered securities exchange.

Coinbase contends that the SEC and FDIC withheld critical information and did not respond to Freedom of Information Act (FOIA) requests.

These requests sought details on the SEC’s stance on Ethereum’s proof-of-stake transition and information from closed investigations into crypto entities. Additionally, Coinbase’s complaint against the FDIC highlights alleged efforts to isolate the crypto industry from banking services.

VanEck Files for Solana ETF

On Thursday, VanEck submitted an application for a Solana (SOL) ETF. The firm aims to be first in line for SEC review of a Solana ETF, considering that initial submissions often receive priority. Despite skepticism about SEC approval, given Solana’s classification as a security in past lawsuits, VanEck Head of Digital Assets Research Matt Sigel told The Block that now is the opportune moment to pursue this financial product due to crypto regulatory conditions becoming more favorable.

To back his theory, Sigel points to recent legislative progress and the SEC’s unexpected approval of spot ether ETFs as indicators of a shifting landscape. While some experts doubt the likelihood of approval due to the absence of futures for Solana, Sigel refutes the necessity of such a requirement. He highlights that market surveillance can be achieved through other means, such as information-sharing agreements, as demonstrated by BlackRock’s IBIT bitcoin ETF.

Recently, Solana has garnered a reputation as the preferred launching pad for various meme coins and celebrity-backed tokens. Following VanEck’s filing, 21Shares also filed for their own Solana ETF offering.

What to Expect in the Markets This Week

While the rest of crypto markets await the SEC’s final approval for ether ETFs, all eyes are on the bitcoin prices this week, after much volatility last week.

Much is also anticipated in terms of crypto regulation, especially after the U.S. Supreme Court’s recent rulings.

In a 6-3 vote last week, the Supreme Court deemed the Chevron precedent unworkable due to its reliance on statutory ambiguity. The court’s decision to overturn the doctrine, which allowed federal agencies significant leeway in interpreting laws, may be “incredibly important” for the cryptocurrency sector, according to Zero Knowledge Consulting founder Austin Campbell.

Campbell says the regulatory stability offered by this ruling is crucial for industries like crypto, where the SEC, Commodities Futures Trading Commission (CFTC), and banking regulators must now adhere strictly to written rules. This shift may also prompt Congress to take a more active role in clarifying laws, ultimately providing greater judicial and legal certainty for the cryptocurrency sector. Notably, the crypto industry has criticized the SEC for failing to provide clear guidelines on how to operate legally in the U.S.

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