Crypto & Blockchain Daily Brief Wednesday, April 24, 2024

BlackRock, the world's largest asset manager, is on the verge of launching a new Bitcoin exchange-traded fund (ETF) that could potentially break records. The company's Bitcoin ETF, called the BlackRock Bitcoin Trust, is awaiting approval from the U.S. Securities and Exchange Commission (SEC). This ETF could become the largest of its kind, surpassing the existing record set by the Purpose Bitcoin ETF. The Purpose Bitcoin ETF currently holds around $1.3 billion in assets under management. BlackRock's entry into the Bitcoin ETF market comes at a time when institutional interest in cryptocurrencies is growing rapidly. The company's CEO, Larry Fink, has expressed his support for cryptocurrencies in the past, stating that Bitcoin could evolve into a global market asset. BlackRock's Bitcoin Trust will allow investors to gain exposure to the cryptocurrency market through a regulated and secure investment vehicle. If approved by the SEC, the BlackRock Bitcoin Trust could attract a significant amount of capital from institutional investors looking to diversify their portfolios with exposure to Bitcoin. The launch of this ETF could also lead to increased mainstream adoption of Bitcoin and other cryptocurrencies, as more traditional investors gain access to this emerging asset class. Overall, the potential launch of BlackRock's Bitcoin ETF represents a major milestone for the cryptocurrency industry, signaling the increasing acceptance and integration of digital assets into the traditional financial system.

The Securities and Exchange Commission (SEC) is pursuing a $5.3 billion judgment against Terraform Labs and its founder, Do Kwon. The SEC alleges that Terraform Labs and Kwon participated in an unregistered securities offering, violating federal securities laws. Terraform Labs is the company behind the Terra blockchain, which issues the stablecoin Terra (LUNA). The SEC's complaint, filed in the U.S. District Court for the District of Columbia, claims that Terraform Labs and Kwon raised billions of dollars through the sale of tokens without registering the offering with the SEC, as required by law. The SEC contends that the tokens sold by Terraform Labs and Kwon are investment contracts and therefore securities under federal securities laws. The SEC is seeking a judgment against Terraform Labs and Kwon that would require them to disgorge the funds raised through the unregistered offering, plus interest. The SEC is also seeking civil penalties against the defendants. The case highlights the SEC's increasing focus on regulating the cryptocurrency industry and enforcing securities laws in the digital asset space. The SEC has brought numerous enforcement actions against companies and individuals in the crypto industry in recent years, signaling its commitment to policing the market and holding those who violate securities laws accountable. Terraform Labs and Kwon have yet to respond publicly to the SEC's complaint. The outcome of the case will have significant implications for the future regulation of the cryptocurrency industry and the enforcement of securities laws in the digital asset space.

Jack Dorsey, the CEO of Twitter and Square, announced that Block (formerly known as Square) is working on developing a full-fledged Bitcoin mining system. This move comes as part of Dorsey's commitment to decentralizing Bitcoin mining and making it more accessible to the public. The project aims to create open-source hardware for Bitcoin mining and make it more energy-efficient and cost-effective. Dorsey highlighted the importance of decentralizing Bitcoin mining, as currently, a significant portion of mining operations are centralized in China. By developing a more accessible mining system, Block hopes to empower individuals and businesses to participate in the Bitcoin network and contribute to its security and decentralization. The new mining system being developed by Block will be based on custom silicon and open-source software. This approach is aimed at increasing the efficiency and sustainability of Bitcoin mining while reducing its environmental impact. The company is also planning to release the designs and software for the mining system as open-source, allowing others to build and customize their own mining hardware. Overall, Dorsey's announcement of Block developing a full Bitcoin mining system reflects a commitment to democratizing and decentralizing the process of mining Bitcoin. By making mining more accessible and sustainable, Block aims to support the long-term growth and security of the Bitcoin network while reducing its environmental footprint.

A group of cryptocurrency lobbyists has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) challenging the agency's definition of "dealer" as it applies to digital asset transactions. The lawsuit argues that the SEC's definition of a dealer is too broad and could unintentionally encompass many individuals and entities involved in the cryptocurrency industry, causing confusion and regulatory uncertainty. The lobbyists behind the lawsuit claim that the SEC's definition of a dealer is overly broad and could encompass a wide range of market participants, including miners, developers, and other stakeholders in the cryptocurrency space who are not traditionally considered dealers. They argue that this broad definition could stifle innovation and harm the growth of the industry by subjecting these individuals and entities to unnecessary regulation. The lawsuit seeks to compel the SEC to revise its definition of a dealer to provide more clarity and specificity regarding which market participants are subject to regulation. The lobbyists argue that a more targeted and precise definition would help to foster innovation and growth in the cryptocurrency industry while still protecting investors and maintaining market integrity. Overall, the lawsuit highlights the ongoing challenges and uncertainties faced by the cryptocurrency industry as it navigates a complex regulatory environment. The outcome of the lawsuit could have significant implications for how the SEC regulates digital asset transactions in the future.

The Philippine Securities and Exchange Commission (SEC) has issued warnings against the use of Binance, a popular cryptocurrency exchange platform, due to its lack of necessary licenses to operate in the country. The SEC has also advised against dealing with entities that are not registered with them, as they may not be complying with the necessary regulations in place to protect investors. The SEC has raised concerns about Binance's mobile application being available on platforms such as Apple's App Store and Google Play Store, despite not being officially recognized by the commission. They have urged both Apple and Google to remove the Binance app from their stores to prevent Filipino citizens from falling victim to potentially risky investments. The SEC's actions are part of a larger effort to regulate the cryptocurrency market in the Philippines and protect investors from potential scams and fraudulent activities. They have emphasized the importance of verifying the legitimacy of cryptocurrency platforms before engaging with them to ensure the safety and security of investors' funds. In response to the SEC's warnings, Binance has stated that they are committed to working with regulatory bodies to comply with local laws and regulations. They have also highlighted their efforts to enhance security measures and provide a safe trading environment for their users. Overall, the SEC's warnings against Binance and other unregistered entities in the cryptocurrency market aim to safeguard investors and promote transparency and accountability within the industry. By raising awareness about the risks associated with unauthorized platforms, the SEC is taking proactive steps to protect investors and maintain the integrity of the financial market in the Philippines.