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- SEC Viewed Ethereum as a Security from March 2023
SEC Viewed Ethereum as a Security from March 2023
SEC ETH investigations and dropping gas fees, key insights on the Tornado Cash case, and the struggles of BTC Rune holders.
Jonathan Morgan
April 29, 2024
OVERVIEW
The SEC Viewed ETH As WHAT in March 2023? 🤯
Bitcoin wrapped up last week with its fourth consecutive bearish weekly candle close. That’s the longest run of red weekly candlesticks since April 2022. 🟥
In today’s Litepaper: a couple of major Ethereum news pieces: Gensler’s SEC has been investigating ETH since March 2023, and gas fees have dropped dramatically.
Plus, an update on cryptos’ most important case involving Tornado Cash and the shocking percentage of BTC Rune hodlers currently in the red. 📰
Before we dive in, here’s today’s crypto market heatmap:
And here’s a look at crypto’s total and altcoin market cap YTD:
ETHEREUM
SEC Thought ETH Was A Security Since March 2023 😮
From Fox Business: New docs just dropped, and it looks like the SEC's been eyeing Ethereum ($ETH) like it’s the latest evil Russian agent from a 1980s conspiracy film. 📜
The papers show the Securities and Exchange Commission, spearheaded by Chair Gary Gensler, has been toying with the idea that Ethereum might just be an unregistered security.
This is interesting because the SEC decided to investigate Ethereum as a security a few days before Gensler testified before the House Financial Services Committee. During that hearing, Gensler avoided any direct answer regarding Ethereum’s security status like a matador evading a bull.
Cut to last week: Consensys slapped the SEC, challenging a Wells notice that had all the charm of a surprise tax audit. Monday’s filings are like the secret sauce, finally giving us a peek at why the SEC's been so hush-hush about Ethereum’s status. 🤫
ETHUSD Daily chart - Click to enlarge.
From a price action perspective, one side of the market is likely happy as hell, and the other is panicking. Hint: Bulls are not happy at all. A bear flag is present on the daily chart, and the breakdown from that flag would trigger a test of a longer-term trend line at $3,025.
Not surprisingly, Stocktwits’ Sentiment score is sitting in bearish (44) conditions. The message volume, however, has moved around quite a bit. Last week, it was low (37), and yesterday, it was high (61) - but today, it’s barely hanging on to normal (47). 🔢
ETHEREUM
Gas Got Cheaper 🎲
Speaking of Ethereum, its transaction fees have gone down quite a bit. 🔍
According to Santiment’s average ETH fees on-chain data, fees are currently sitting at $3.87, which is well off the recent highs from March 4 of $15.21. What makes the fees go up and down? A lot of comes down to market sentiment and activity. When traders are bullish, fees climb. When they’re bearish, fees plummet.
Ethereum Fees - Click to enlarge.
And that’s why these low fees are a cause for concern. While some might see this as a sign of reduced activity and bearish sentiment, other analysts see the decrease in fees as possible evidence of congestion dropping due to the recent Dencun network upgrade.
We likely won't know for a few months whether it’s the recent network upgrade or reduced volume. 🚀
NEWS
Crypto’s Most Important Case? 🌪️
Do you think the $XRP, Coinbase ($COIN), or Ethereum ($ETH) cases are the most important for the crypto market? For speculators and investors, sure. But there’s one case that puts one of crypto and Satoshi’s principles at stake: privacy and anonymity. 🔨
The DOJ is taking a hard stance against Roman Semenov, co-founder of Tornado Cash. The DOJ's recent opposition to Semenov's motion to dismiss conspiracy and money laundering charges.
A quick refresher on Tornado Cash: it is a crypto-mixer that provides anonymity by obfuscating the origination of crypto. According to advocates, services like Tornado Cash are vital for protecting user privacy against intrusive surveillance, aligning perfectly with the ethos of decentralization and the resistance to control that cryptocurrency born out of. 🌪️
However, the DOJ contends that Tornado Cash overstepped legal boundaries, becoming a tool for illicit activities, including sanctions evasion by notorious groups like North Korea's Lazarus Group.
Semenov’s defense argues that Tornado Cash is merely a set of protocols that do not qualify as a "financial institution" and that his role was limited to contributing code, questioning the fairness of holding developers accountable for the actions of their users. 🛡️
NFT
Runes Rise Ruined? ⚔️
When Bitcoin halved this year, it wasn't just about the miners or the market adjustments; it was the debut of Runes that snatched the spotlight. 🔍
However, 68% of Runes are currently lounging in the red.
The hype train for Runes was fully loaded. It promised to catapult Bitcoin into new realms by allowing the tokenization of everything from stocks to stables. Yet, despite the excitement, reality hit hard.
Critics are mixed on Runes. Some see Runes as an evolving platform with potential yet to be unleashed, and other say its to early to tell. Despite the whipsaws in price action, the infrastructure for Runes has been touted as revolutionary.
Runes developers expect broader adoption as the network matures, offering a user-friendly way to engage with the Bitcoin ecosystem without the complexities of previous standards like Ordingals (BRC-20).
There are currently nearly 350,000 Rune hodlers. 🚀
STOCKTWITS “CHART ART”
Chart Says Bitcoin’s Crypto Dominance Can Continue ₿
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NEWS
Crypto News In Three Sentences 📰
🏆 Lido ($LDO) Finance just achieved something major. Lido now has over a million Ethereum validators under its belt, representing a whopping 28.50% of all staked ETH. This massive turnout beefs up network security and ensures decentralization is not just a buzzword but a reality. From CryptoPotato.
🧠 Tether ($USDT) is doing more than just keeping cryptocurrencies stable; they’re diving into the brain game with a cool $200 million tossed into Blackrock Neurotech. They’re betting on revolutionizing healthcare with brain-computer interfaces and helping people regain more than just their financial balance. CryptoNews has more.
💸 The Lazarus Group is basically the James Bond villain of crypto, swiping over $200M since 2020. With a mix of crypto mixers and some shady P2P marketplaces, these guys have turned laundering into an art form. And yes, they’re probably not stopping at crypto—heists, malware, the full evil enchilada. More from Cointelegraph.
🎨 While the NFT market might be cooling down, Bitcoin’s ($BTC) is heating up, cornering 44% of the market's sales last month. It’s not just about being a digital gold; it’s also about dominating the digital art scene. And with Bitcoin Ape #2,301 fetching nearly half a million, who says art and crypto can’t mix? From Bitcoinist.
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