Matter Labs, the developer of the ZkSync Ethereum Layer 2 network, has dropped its attempt to trademark the term “ZK” following backlash.

According to a statement posted on social media by Matter Labs, the decision to withdraw applications came after extensive discussions with key figures in the zero-knowledge proof field.

Thank you to everyone who reached out following our post, offering ideas, support, and feedback.

As a result of these conversations, we decided to drop all trademark applications for the term “ZK”.

These discussions came down to one important fact: it would be impossible to…

— Matter Labs (∎, ∆) (@the_matter_labs) June 2, 2024

Community Leaders Condemn Unethical Attempt

A group of industry leaders published a statement to criticize the company’s attempt. The backlash was driven by concerns that trademarking the term would undermine the community’s collaborative spirit and restrict access to a fundamental technology.

“We condemn this behavior in the strongest possible terms, as a transparent attempt by a corporation to claim ownership over something that does not belong to it,” the public statement reads. “We believe that ZK is a public good that belongs to everyone.”

“A company exploiting the legal system to annex a public good violates the crypto ethos, the Ethereum ethos, and the academic ethos. It even goes against Matter Labs’ own ethos, which states: ‘We can make this world better by increasing people’s freedom,’” the letter addressed.

The statement also emphasized that ZK should remain public and accessible to all users. It stated that the technology and knowledge were created collectively, and therefore, all contributions should be owned by the collective.

The signatories included ZK Proofs co-inventors Shafi Goldwasser and Silvio Micali, StarkWare CEO Eli Ben-sasson, Polygon co-founders Sandeep Nailwal and Brendan Farmer, Polyhedra Network co-founder Tiancheng Xie, and Kakarot co-founder Elias Tazertes.

Matter Labs to Launch ZK Token Airdrop

Matter Labs said in the post that the company was proud to be in the movement that demonstrated tremendous care about crypto values.

“As a result of these conversations, we decided to drop all trademark applications for the term ‘ZK,’” said the company. “What could have worked for Ethereum would not necessarily work for the entire world.”

In addition, the company planned to launch an airdrop and invited the current users to register for wallets whitelisting.

The post Matter Labs Withdraws ‘ZK’ Trademark Application After Industry Backlash appeared first on Cryptonews.

Since the approval of spot Ether exchange-traded funds (ETFs) in the United States on May 23, over $3 billion worth of Ether has been withdrawn from centralized crypto exchanges (CEXes), indicating a potential upcoming supply squeeze.

Data from CryptoQuant reveals that between May 23 and June 2, the amount of Ether held on exchanges decreased by approximately 797,000 ETH, equivalent to $3.02 billion.

The decline in exchange reserves suggests that fewer coins are available for immediate sale as investors transfer their holdings to self-custody for various purposes, beyond immediate selling.

Ether Supply on Exchanges Lowest in Years

Further data shared by BTC-ECHO analyst Leon Waidmann, sourced from Glassnode, highlights that the percentage of circulating Ether supply held on exchanges is currently at its lowest level in years, standing at just 10.6%.

The decrease in available supply on exchanges may contribute to increased demand pressure on Ether.

Exchange balances for both #Bitcoin and #Ethereum are at their lowest levels in years!

Whales continue to accumulate. #BTC on exchanges is down to 11.6% and #ETH is at 10.6%!

Supply squeeze incoming.

Get ready for the next big move. pic.twitter.com/u4j13DZBJk

— Leon Waidmann | On-Chain Insights (@LeonWaidmann) June 2, 2024

The potential launch of Ether ETFs has garnered attention, with Bloomberg ETF analyst Eric Balchunas suggesting a “legit possibility” of their introduction by late June.

Some analysts speculate that the trading launch of spot Ether ETFs could result in increased demand for Ether, potentially propelling its price beyond its previous all-time high of $4,870 reached in November 2021, similar to the effect observed with Bitcoin after the introduction of spot Bitcoin ETFs in January.

Compared to Bitcoin, Ether may experience even greater benefits from demand pressures due to its lower “structural sell pressure,” as highlighted in a report by DeFi analyst Michael Nadeau.

While Bitcoin miners occasionally sell BTC to cover mining expenses, Ethereum validators do not face the same operating costs.

This dynamic could potentially contribute to stronger price performance for Ether.

However, concerns have been raised regarding the influence of Grayscale’s Ethereum Trust (ETHE), which manages $11 billion in funds, on Ether’s price action.

If it follows the pattern of the Grayscale Bitcoin Trust (GBTC), there could be significant outflows from ETHE, impacting Ether’s price.

Presently, Ether is trading at $3,781, representing a 0.82% decline over the past 24 hours and a 23% decrease from its all-time high, according to CoinMarketCap.

Ethereum ETF Approval Was Political

Bloomberg ETF analyst James Seyffart believes the approval of spot Ethereum ETFs was likely influenced by political decisions rather than purely financial considerations.

In a recent interview, Seyffart suggested that the political climate, including actions by the Biden administration and responses from the crypto community, played a significant role for the approval to go through.

Beyond Bitcoin and Ethereum, the approval of other crypto ETFs, including Solana, is unlikely without significant regulatory changes, Seyffart said.

He noted that a regulated market is needed to monitor these assets for fraud and manipulation.

In contrast, crypto investor and trader Brian Kelly has suggested that Solana could potentially become the next cryptocurrency to have a spot ETF in the United States.

In a recent episode of CNBC’s ‘Fast Money’, Kelly, who is also the founder and CEO of the BKCM Digital Asset Fund, posed the question, “The trade now is, who’s next?”

He then suggested, “You’ve got to think about Solana as probably the next one. Bitcoin, Ethereum, and Solana are probably the big three for this cycle.”

The post Over $3 Billion Worth of ETH Withdrawn from CEXes Since Approval of US Ether ETFs appeared first on Cryptonews.

El Salvador’s crypto-friendly President Nayib Bukele, 42, is set to govern for another five years taking near-total control of parliament.

President Bukele took the oath of office at the National Palace in San Salvador this weekend. During the ceremony, he received the presidential blue and white sash from Ernesto Castro, the President of the Legislative Assembly. The whole ceremony was broadcast live and many Salvadorans gathered to cheer for the President.

Over the years, the young President has shown support for crypto and it has been revealed that El Salvador has much more Bitcoin than previous estimates when President Bukele posted on X that the country has moved over 5,000 bitcoins worth over $400 million into a cold wallet.

Oficialmente, @nayibbukele es el Presidente de la República de El Salvador para el periodo 2024 – 2029.#InvestiduraPresidencial pic.twitter.com/idcypyt2Jf

— Casa Presidencial (@PresidenciaSV) June 1, 2024

Donald Trump Jr. arrived in El Salvador to attend the inauguration. He congratulated the President on winning a second term and joked about not having to imprison his political opponents. To which President Bukele responded, “we don’t jail political opponents here.”

I congratulated President @nayibbukele this morning for winning a second term and not even having to try to imprison his political opponents!

Bukele said “we don’t jail political opponents here.”

Incredible concept! pic.twitter.com/Ok604ouMA4

— Donald Trump Jr. (@DonaldJTrumpJr) June 3, 2024

Many crypto enthusiasts took to the social media platform X to congratulate President Bukele on a decisive victory for the 2024-2029 term.

Leadership under a Bitcoin Standard looks like this.

-Young
-Smart
-Fit
-Patriotic

Bukele is Proof of Work— Cheers to 5 more years. God bless El Salvador pic.twitter.com/rQd4yv5OwY

— Cory Bates (@corybates1895) June 1, 2024

El Salvador’s Bitcoin Adoption

In September 2021 El Salvador became the first nation to use bitcoin as legal tender when bitcoin was trading around $51,000. The move aimed to foster financial inclusion, streamline remittance payments, and promote financial innovation.

During the early days of adoption, President Nayib Bukele’s decision faced criticism, particularly after bitcoin’s price plunged from its all-time high of $69,000 in November 2021. El Salvador has remained steadfast in its bitcoin strategy. Today bitcoin is trading at around $68,400.

In May, El Salvador introduced a cutting-edge online platform for tracking the country’s Bitcoin Treasury. The introduction of the platform is a significant step towards enhancing the financial transparency of government operations in El Salvador. The website, akin to a mempool, offers public access to data regarding El Salvador’s BTC investments

The post El Salvador’s President Nayib Bukele Sworn in for Second Term appeared first on Cryptonews.

East African nation Rwanda aims to create its own retail central bank digital currency (CBDC) to assert its significance in the global economy’s future landscape by 2026.

According to the National Bank of Rwanda, the CBDC would be a secure and convenient alternative to cash, potentially bringing more people into the banking system.

The deputy governor of Rwanda’s central bank, Soraya Hakuziyaremenye, discussed plans for a digital currency and its advantages for citizens in a recent interview with The New Times.

She highlighted that several African nations, like Nigeria, Ghana, and South Africa, are already testing or launching their own digital currencies. She mentioned that Rwanda’s central bank has been collaborating with the finance ministry, and technology since 2022 to study these examples and explore a Rwandan CBDC.

Rwanda’s Central Bank Prioritizes Risk Assessment for CBDC

Their research highlighted the importance of understanding not just the technology involved, but also the potential risks of issuing a digital currency.

She explained that a CBDC would encourage competition and innovation within payment systems, supporting Rwanda’s goal of a cashless economy. Additionally, it would streamline international transactions. The central bank plans to take a measured approach to the CBDC, requiring government approval before proceeding.

The official emphasized that public adoption is crucial for the CBDC’s success. The bank doesn’t want to launch a digital currency simply for the sake of it; it needs to offer clear advantages for Rwandan citizens.

Rwanda’s CBDC Pilot to Test Technology and Design in a Controlled Setting

Rwandans have four more weeks to participate in the public discussion about the CBDC. After that, the central bank will move forward with a pilot test to assess its feasibility.

“That will allow us to test the technology, the design, and the speed on a small scale,” the governor said. “But there is also an aspect of cases where we want to test the technology in other countries, particularly in cross-border payments, this exercise will roughly take six months.”

The pilot test will involve a select group of people and businesses using the CBDC. This will allow the central bank to evaluate the technology’s smoothness, resilience, and effectiveness in managing potential risks.

The post Rwanda to Roll Out CBDC By 2026 After Consultations, Testing appeared first on Cryptonews.

The FTX estate, led by CEO John Ray III, has divested its remaining shares in Anthropic, the AI startup known for its chatbot Claude, as revealed in the firm’s recent bankruptcy filings.

According to the filings, FTX sold the remaining 15 million shares for approximately $30 each, resulting in proceeds exceeding $450 million.

The sale brings the total earnings from FTX’s initial $500 million investment in Anthropic to around $1.3 billion, resulting in a profit of roughly $800 million.

Notably, the price per share for this second sale matched that of the first sale conducted in March.

Leading the buyers in this round was global venture capital fund G Squared, which acquired approximately one-third of the remaining shares, equivalent to 4.5 million shares, for $135 million.

Other venture capital funds constituted the majority of the remaining 20 buyers involved in the acquisition of Anthropic shares.

Cost of FTX Bankruptcy Surges

In parallel to these developments, the cost of the FTX bankruptcy has surged past $500 million in legal and administrative fees, as reported by The Block.

FTX creditors have expressed concerns regarding a potential conflict of interest, as the primary law firm managing FTX’s bankruptcy, Sullivan and Cromwell, had previously represented FTX.

The situation has prompted the appointment of an independent examiner and triggered a class-action lawsuit.

The New York Times’ analysis from last year revealed that law firms have charged hundreds of millions of dollars in fees for crypto company bankruptcies.

FTX CEO John Ray has submitted a bill of $5.6 million to the estate, reflecting his hourly rate of $1,300 since the initiation of the case.

The estate intends to repay at least 118% of allowed claims, measured in dollar value at the time of FTX’s bankruptcy filing, to 98% of its creditors.

Former FTX Co-CEO Sentenced To 7.5 Years

Ryan Salame, former co-CEO of FTX Digital Markets, has been handed a 7.5-year prison sentence by a federal judge after pleading guilty to two felony charges.

The sentencing took place on 28 May 2024 in the US District Court for the Southern District of New York, with Judge Lewis Kaplan presiding over the case.

Salame entered a guilty plea in September 2023 and has been awaiting sentencing.

As reported, Salame requested leniency from the court in the form of an 18-month sentence.

Last month, Bankman-Fried filed to appeal his conviction and sentence for fraud and conspiracy charges.

The disgraced crypto boss was convicted last November after a month-long trial on seven different charges and was sentenced to 25 years in prison.

Meanwhile, the FTX bankruptcy estate has outlined its target to initiate repayments to customers by the end of 2024, as disclosed during a meeting of FTX Digital’s Joint Official Liquidators in the Bahamas.

The FTX bankruptcy consists of two distinct processes, including the Chapter 11 bankruptcy being overseen by a Delaware court in the United States and the official liquidation of FTX Digital, the Bahamas-based subsidiary of FTX.

The post FTX Estate Sells Off Remaining Anthropic Holdings Amid Bankruptcy Proceedings appeared first on Cryptonews.

Ripple CEO Brad Garlinghouse recently predicted that Solana ETF is inevitable following the SEC’s approval of Bitcoin and Ethereum ETFs.

At the Consensus 2024 event, Garlinghouse highlighted the potential for Solana ETFs, emphasizing the importance of regulatory clarity for the growth of digital assets in the U.S.

This optimism, coupled with the prediction of a $5 trillion crypto market, has sparked interest in Solana price prediction. Investors are now speculating whether SOL could reach $1,000 this year.

Ripple CEO Sees Solana ETF as ‘Inevitable’

Ripple CEO Brad Garlinghouse predicts the emergence of Solana (SOL) ETFs, following SEC approval of Bitcoin and Ethereum ETFs. At the Consensus 2024 event, he stated:

“It’s just a matter of time for an XRP ETF, a Solana ETF, and a Cardano ETF.”

Garlinghouse highlighted the challenges of regulatory approval for these ETFs and criticized the lack of clarity in Washington. He emphasized the importance of clear regulations for the growth of digital assets in the U.S.

BREAKING: RIPPLE CEO CONFIRMS $XRP ETF — “Just A Matter Of Time” !!

“I think it’s just a matter of time, and it’s inevitable there’s gonna be an #XRP ETF, there’s gonna be a Solana $SOL ETF, there’s gonna be a Cardano $ADA ETF, and that’s great,” — @bgarlinghouse

Also… pic.twitter.com/moTk1sFVzr

— Good Morning Crypto (@AbsGMCrypto) May 31, 2024

Garlinghouse also expressed optimism about the crypto market reaching a $5 trillion valuation due to recent ETF approvals. He believes various crypto projects can coexist, each focusing on different aspects of decentralized finance and digital assets.

Key Points:

Solana ETF predicted as inevitable by Ripple CEO
Regulatory clarity is crucial for growth
Crypto market potential of $5 trillion

Crypto ETFs allow investors to gain exposure to digital assets without holding them directly, making them significant for institutional investors. The rise of ETFs could drive Solana’s price, potentially reaching $1,000 this year.

Solana Price Nears $166 Amid Solana ETF Talks

Solana is currently priced at $166.09 on the 4-hour chart. The pivot point, marked by the green line, is at $167.89. Immediate resistance levels are $172.50, $176.00, and $180.50, while immediate support levels are $163.50, $160.50, and $156.80.

On the 4-hour timeframe, Solana is consolidating within a range, forming a symmetrical triangle pattern between $168 and $163. This pattern indicates indecision among investors.

Solana Price Prediction

A breakout above $168 could push Solana towards $173 and $180, while a breakdown below $163 could lead to a decline towards $156 and possibly $150.

The RSI is at 47, indicating a neutral trend. The 50-day EMA is $167.61, acting as a resistance.

In conclusion, monitor the $167.89 pivot point closely. A move above it suggests potential bullish momentum, while a break below $163 could signal further declines.

Conclusion

Overall, in the long term, Solana’s price prediction remains bullish as the market anticipates the introduction of SOL ETFs. With regulatory clarity and increasing institutional interest, Solana could see significant gains, possibly reaching $1,000 by the end of next year.

Alternative Meme Tokens for Big Rallies

Traders looking for quick, significant gains might consider newer alternatives, including tokens in presales. One promising token is PlayDoge (PLAY), an Ethereum-based cryptocurrency that recently opened its presale, raising $0.93 million of its $1.38 million goal.

PlayDoge’s appeal lies in its Doge-themed Tamagotchi-style game with crypto-enabled play-to-earn mechanics. Players can breed, trade, and take their virtual Shiba Inu dogs on missions, earning PLAY tokens with a maximum supply of 9.4 billion. The current presale price is $0.00501 per token.

Current Status: $0.93 million raised
Token Supply: 9.4 billion PLAY

More game details will emerge soon, but interested parties can participate in the presale on the PlayDoge website. Early investment is advantageous as the presale price increases with each stage, potentially leading to significant gains once the game launches and lists on exchanges.

Visit PlayDoge Now

The post Solana Price Prediction as Ripple CEO Sees SOL ETFs as ‘Inevitable’ – Will SOL Reach $1,000 This Year? appeared first on Cryptonews.

Magic Leap has announced a technology partnership with Google to develop new extended reality (XR) technologies.

The collaboration brings together Magic Leap’s expertise in optics with Google’s infrastructure, potentially signaling increased competition for Apple and Meta in the metaverse hardware and experiences space, the company said in an announcement.

While Google recently downsized its augmented and extended reality teams, and Magic Leap faced setbacks with one of its major projects, this partnership could have positive implications for the metaverse as a whole.

The collaboration aims to advance immersive experiences for developers and customers, blending the physical world with valuable and contextually relevant XR solutions.

“This partnership accelerates the transformative power of AR by combining our extensive optics capabilities with Google’s technologies to continue to advance immersive experiences to the developer ecosystem and for customers,” Magic Leap CTO Julie Larson-Green said.

“We are looking forward to expanding the potential of XR – blending the physical world with valuable, contextually relevant solutions.”

New AR/XR Headset Could be on Horizon

Although the press release did not detail any specific products or services resulting from the partnership, it raises speculation about the development of a new AR/XR headset that could challenge the market dominance of Meta and Apple.

However, the exact benefits for Google in this partnership remain unclear.

While Google has a track record of creating bespoke hardware across various product categories, its previous AR/XR efforts, such as Google Glass, have not met with significant success.

Tech journalist Sean Hollister suggests that Google may be interested in a patent or methodology held by Magic Leap.

Alternatively, Google could be seeking to avoid falling behind its major competitors in the AR/XR space or avoid the need to establish a new AR/XR unit following previous layoffs.

The partnership between Magic Leap and Google highlights the growing importance of the metaverse and the race to develop immersive technologies that blend the digital and physical worlds.

As companies like Apple and Meta invest heavily in metaverse initiatives, the collaboration between Magic Leap and Google introduces another player into the mix, potentially driving further advancements in the XR space.

Metaverse Continues to Gain Traction

The concept of the Metaverse has gained significant attention in recent times, prompting many to consider its investment prospects.

The Metaverse refers to a virtual universe where users can interact with a computer-generated environment and other participants in real-time.

It encompasses a wide range of technologies, including virtual reality (VR), augmented reality (AR), blockchain, and artificial intelligence (AI).

The global metaverse market has been experiencing rapid growth.

In 2022, the market was valued at approximately $63.83 billion.

However, the market is expected to grow at an impressive compound annual growth rate (CAGR) of 44.4% from 2023 to 2030, potentially reaching a staggering $1.6 trillion by 2030.

Companies like Meta (formerly Facebook), Microsoft, Tencent, and Nvidia are heavily investing in the metaverse to enhance their platforms and create new user experiences.

For instance, Meta invested $50 million in global research and development for the metaverse, and Epic Games raised $1 billion, including a $200 million investment from Sony.

The post Google and Magic Leap Forge Partnership for Next-Gen Metaverse Experience appeared first on Cryptonews.

Bitcoin Price Prediction

Bitcoin’s exchange balances have dropped to their lowest level since March 2018, falling below 2.3 million BTC. This significant decline, driven by major outflows from Binance and Coinbase, suggests a shift towards long-term holding strategies.

As large holders, or “whales,” transfer their assets to private wallets, the trend indicates anticipation of future price increases.

This situation has prompted a bullish outlook for Bitcoin as investors speculate on the potential for significant gains in the near future.

Innovative AI Meme Coin Wiener AI – Can It Outshine Competitors?

The new meme coin, Wiener AI (WAI), themed around a sausage dog, offers more than just novelty. It features advanced AI-powered trading tools, adding significant utility. Investors have already contributed $3.85 million to WAI’s presale, indicating strong interest.

With AI trending in the market, especially post-Nvidia’s earnings, WAI is poised for increased demand. Additionally, 20% of the total supply is allocated for staking rewards, offering an impressive 396% APY.

3 Million raised!

As holder count grows, so does the anticipation for launch and the AI trading bot release!!

pic.twitter.com/Y19TEbKwjc

— WienerAI (@WienerDogAI) May 26, 2024

Next Price Increase In Days: 02
USDT Raised: $3,853,633.72 / $4,122,480

Crypto analysts, including Michael Wrubel, with over 312,000 YouTube followers, rate WAI as a top 2024 pick. The presale price is $0.000713, with a market cap under $50 million. If WAI achieves market leadership, early investors could potentially see significant returns.

Buy Wiener AI Here

The post Bitcoin Price Prediction as Exchange Balances Hit Five-Year Low – Bullish Outlook for BTC? appeared first on Cryptonews.

BONK’s recent price decline has led to a significant drop in investor confidence, reflected in the asset’s Open Interest (OI). OI fell from $24 million to $16 million, slightly recovering to $17.27 million.

Despite a positive funding rate favoring long contracts, the sharp decrease in OI suggests bearish sentiment. This downturn in investor confidence could result in further price decreases if it persists.

Current price analysis places BONK at $0.00003323, with technical indicators pointing to potential key support and resistance levels.

BONK Investors Losing Confidence as Open Interest Drops

BONK’s price decline is impacting investor confidence, evident in the asset’s Open Interest (OI). OI fell by $8 million, decreasing from $24 million to $16 million on Saturday.

However, it slightly recovered to $17.27 million on Sunday, reflecting a 0.09% increase.

BONK Derivatives Data Analysis

Although the funding rate remains positive, indicating a dominance of long contracts, the significant drop in OI suggests a bearish sentiment for BONK.

This decline in OI could lead to further price decreases if investor confidence does not improve.

Key Points:

Open Interest: Decreased by $8 million in 48 hours.
Current Open Interest: $16 million, and now to over 17 million
Funding Rate: Still positive, favouring long contracts.

What is Open Interest (OI) and What Does It Mean for You?

Open Interest (OI) refers to the total number of outstanding derivative contracts, such as futures or options, that have not been settled. It provides insight into an asset’s trading activity and liquidity.

A higher OI indicates more interest and participation in the market, while a lower OI suggests declining interest.

In the context of BONK, the recent drop in OI from $24 million to $16 million, despite a slight recovery to $17.27 million, indicates reduced investor confidence, which could negatively affect its price.

Bonk Price Prediction

The price of BONK is currently $0.00003323 on the 4-hour chart. The pivot point, marked by the green line, stands at $0.00003536.

Immediate resistance levels are identified at $0.00003802, $0.00004013, and $0.00004261, while immediate support is found at $0.00003240, followed by $0.00003014 and $0.00002787.

Bonk Price Prediction – Source: Tradingview

Technically, the Relative Strength Index (RSI) is at 39.79, indicating oversold conditions, and the 50-day Exponential Moving Average (50 EMA) is $0.00003482.

The upward trendline is supporting BONK near the $0.00003240 level, which is further reinforced by a double bottom pattern. This suggests a potential continuation of the uptrend if the price remains above $0.00003240.

In conclusion, consider buying BONK above $0.00003240, while a break below this level may signal a sell-off.

Alternative Meme Tokens for Big Rallies

BONK hasn’t been the strongest-performing meme coin this year, with many smaller-cap tokens outperforming it in recent months.

Traders looking for quick, significant gains might consider newer alternatives, including tokens in presales.

One promising token is PlayDoge (PLAY), an Ethereum-based cryptocurrency that recently opened its presale, raising $0.93 million of its $1.38 million goal.

PlayDoge’s appeal lies in its Doge-themed Tamagotchi-style game with crypto-enabled play-to-earn mechanics. Players can breed, trade, and take their virtual Shiba Inu dogs on missions, earning PLAY tokens with a max supply of 9.4 billion. The current presale price is $0.00501 per token.

Current Status: $0.93 million raised
Token Supply: 9.4 billion PLAY

More game details will emerge soon, but interested parties can participate in the presale on the PlayDoge website. Early investment is advantageous as the presale price increases with each stage, potentially leading to significant gains once the game launches and lists on exchanges.

Visit PlayDoge Now

The post Bonk Price Prediction as Open Interest Falls by $8 Million – Will BONK Recover? appeared first on Cryptonews.

President Joe Biden has vetoed a resolution aimed at overturning the U.S. Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin (SAB) No. 121.

Biden argued that challenging the proposed guidelines would compromise the SEC’s authority, leading him to veto the resolution.

Biden Addresses SAB 121

In an official letter on May 31, Biden explained his decision, stating that reversing the SEC staff’s considered judgment in this manner could undermine the SEC’s broader authorities regarding accounting practices.

“This reversal of the considered judgment of SEC staff in this way risks undercutting the SEC’s broader authorities regarding accounting practices,” Biden wrote.

“My Administration will not support measures that jeopardize the well-being of consumers and investors.”

The controversial accounting guidelines, set to take effect on April 11, required institutions that custody crypto assets to record crypto holdings as liabilities on their balance sheets.

However, they faced significant backlash from the crypto community and lawmakers.

Lawmakers in the House of Representatives voted to repeal the SEC’s guidance, passing the bill to the Senate.

The Senate echoed the House vote and elected to repeal SAB 121 by a margin of 60-38 votes.

The decision to veto the bill has drawn frustration from the wider crypto community.

Many argue that it stifles innovation and hampers the industry during a critical time.

The Blockchain Association, a crypto advocacy group, expressed disappointment in a post on May 31.

They stated that the administration’s choice to overrule bipartisan majorities in both houses of Congress, who recognized the harm caused by SAB 121, was disheartening.

Likewise, Cody Carbone, the Digital Chamber’s chief policy officer, stated in a post on May 31 that it was a “slap in the face to innovation and financial freedom.”

Ripple CEO Brad Garlinghouse added that the decision was incredibly disappointing and came at a pivotal time for the industry.

Biden vetoes the resolution to nullify SAB 121.

Process? Who cares.

Consumer protection? No thanks.

Appeasing Gensler’s crypto vendetta? Sure thing.

This is a slap in the face to innovation and financial freedom. #Crypto #Fail pic.twitter.com/4QPhKkhN4r

— Cody Carbone (@CodyCarboneDC) May 31, 2024

House Passes Crypto Market Structure Bill FIT21

Last week, the US House of Representatives approved a comprehensive bill to establish regulatory frameworks for digital asset markets, marking a huge win for the industry.

The Financial Innovation and Technology for the 21st Century Act (FIT21) secured a 279-136 vote, with both Democrats and Republicans supporting the measure.

The FIT21 bill intends to establish a regulatory regime for US crypto markets.

It aims to introduce consumer protections, designate the Commodity Futures Trading Commission (CFTC) as a key regulatory authority for digital assets and non-securities spot markets, and provide clearer definitions of what constitutes a security or a commodity in the crypto token realm.

As reported, Patrick McHenry, House Financial Service Committee chairman, is pushing the Senate to advance the FIT21 crypto legislation before the US elections.

According to McHenry, the House’s approval of crypto market structure legislation is a “wakeup call” to take swift action.

He also stressed that Senate Majority Leader Chuck Schumer’s support and backing is important, particularly for stablecoin regulations.

The post Biden Vetoes Bill Overturning SEC Crypto Accounting Standard SAB 121 – Here’s What That Means appeared first on Cryptonews.