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Ethereum co-founder Joseph Lubin believes the United States Securities and Exchange Commission is intentionally hindering innovation, which threatens the countrys existing financial landscape.

Speaking at FT Lives Crypto and Digital Asset summit in London, Lubin unpacked Consensyss decision to sue the SEC after receiving a Wells notice from the U.S. securities regulator.

The SEC appears to have reclassified Ether as a security without telling anybody that thats the case. They are going about a strategic series of enforcement actions rather than open discourse and clear rulemaking, Lubin said.

Related:Consensys files lawsuit against SEC and commissioners over Ether regulation

The CEO of Consensys which developed the MetaMask wallet said the enforcement actions intend to create fear, uncertainty and doubt for the cryptocurrency industry in an attempt to paralyze and force the company offshore.

Lubin said the firms counteraction against the SEC is aimed at getting more clarity from U.S. courts, considering that the Commodity Futures Trading Commission had previously classified Ether (ETH) as a commodity.

The Consensys CEO also highlighted the upcoming deadline for the SEC to issue a decision over the approval of Ether spot exchange-traded funds (ETFs) as a driving force behind the regulators renewed enforcement action against Ethereum.

We believe that theres a flurry of activity designed to enable them to say that their action wasnt capricious in the very likely event that they deny the Ether spot ETFs, Lubin explained.

Lubin said the SEC had noticed how much capital had flowed into the ecosystem following the approval of spot Bitcoin (BTC) ETFs:

Lubin also speculated that the prospect of the banking industry's customers moving assets into digital forms using decentralized finance constructs could scare many banks and other financial institutions.

The SEC probably doesnt want to see a wave of innovation that will really transform the landscape," he said.

The importance of a positive outcome against the SEC could also have wide-reaching implications for the cryptocurrency and technology landscape in the United States.

Lubin said the SECs claims that Coinbase and MetaMasks wallets are acting as broker-dealers are setting a dangerous precedent. He added that the thought of a piece of software acting as a broker-dealer was a preposterous notion.

Related: US SEC expected to deny spot Ether ETFs in May

Were at odds over whether we should register MetaMask as a broker-dealer. Should every MetaMask user have to register their wallet as a broker-dealer, its chilling, Lubin added.

The Consensys CEO concluded that the entire technology industry in the U.S. could be impacted by the actions of the securities regulator.

Magazine:What do crypto market makers actually do? Liquidity, or manipulation

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SEC doesn't want Ethereum to transform banking landscape, says Joseph Lubin - Cointelegraph

ARK Invest and 21Shares have submitted a new proposal to launch a spot Ethereum exchange-traded fund (ETF).

However, this revised proposal comes with one notable change: the exclusion of staking.

In their initial submission, the companies had included plans to stake a portion of the ETF's assets through trusted providers. However, Friday's updated filing no longer mentions this component.

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According to Bloomberg ETF analyst Eric Balchunas, the removal of staking could have different implications.

Notably, this could be an attempt to align its filings with SEC comments, which would be a positive development.

However, given that there have been no comments from the SEC, it could also be a last-ditch effort or a strategy to minimize the SEC's reasons for rejecting the proposal.

Originally posted here:

ARK Invest and 21Shares Remove Staking from Their Ethereum ETF Application - ihodl.com

Only Arbitrum at $2.6 billion has a great amount of deposits than Bases $1.6 billion among all Ethereum layer 2 networks, DefiLlama data shows, and in a note published Thursday, Franklin Templeton said it expects Base to remain a leader.

Base is an Ethereum layer 2 blockchain that was started by crypto exchange Coinbase.

Franklin Templeton, a $1.5 trillion asset manager, pointed to strong support from Coinbase as a major positive for Base.

Bases recent growth has been propelled by memecoin trading and interest in so-called SocialFi projects, Franklin Templeton said.

In recent months, Base has seen a significant rise in activity, primarily driven by Base meme coins trading activity and SocialFi applications such as friend.tech, the firms note stated.

Bases buzzing activity levels have prompted an increase in transaction fees for Sequencer the part of Bases network responsible for organising, verifying, and transferring transaction bundles to the Ethereum network.

Like other Ethereum layer 2 networks, Base hasnt decentralised its Sequencer yet. All of its revenue now goes to Coinbase, the entity responsible for running the Sequencer.

The bulk of the spike in activity on Base came in March when memecoin trading reached a fever pitch. Some popular tokens included TOSHI and BRETT, with BRETT reaching a peak of $800 million in market value.

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The memecoin trading came in the aftermath of Ethereums Dencun upgrade that lowered transaction fees on layer 2 networks by as much as 98%.

Franklin Templetons report also said that Base has hit a home run in the SocialFi niche.

Currently, Base has [about] 46% for all transactions related to SocialFi, the report said. This category is a key vertical for Base adoption and growth.

Before memecoins exploded on Base this year, friend.tech, a popular SocialFi project, was the major draw in 2023 for activity on the network.

Bases growing user adoption has also meant a big increase in stablecoin volume on the network. The market cap for stablecoins on Base has reached $2.8 billion, according to DefiLlama.

Circles USDC stablecoin accounts for the bulk of the volume. Thats not common in DeFi where Tethers USDT is the dominant stablecoin on most blockchains.

Coinbases support for free USDC transfers to the Base chain via the exchanges wallet since December 2023 is a likely reason for the stablecoins popularity on the network.

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What were reading

Osato Avan-Nomayo is our Nigeria-based DeFi correspondent. He covers DeFi and tech. To share tips or information about stories, please contact him at osato@dlnews.com.

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Franklin Templeton expects this network to 'remain a leader' on Ethereum - DLNews

May 13, 2024 by Diana Ambolis

24

The ever-evolving world of cryptocurrency presents unique opportunities for savvy investors. Airdrops, the distribution of free tokens to promote a new project or reward existing users, have become a popular marketing strategy within the Ethereum Classic (ETC) ecosystem. But with a plethora of airdrops vying for your attention, how do you separate the worthwhile gems

The ever-evolving world of cryptocurrency presents unique opportunities for savvy investors. Airdrops, the distribution of free tokens to promote a new project or reward existing users, have become a popular marketing strategy within the Ethereum Classic (ETC) ecosystem. But with a plethora of airdrops vying for your attention, how do you separate the worthwhile gems from the fleeting rainbows? This comprehensive guide delves into the world of ETC airdrops, equipping you with the knowledge to make informed decisions.

The Allure of Airdrops: Free Tokens and Potential Rewards

The primary attraction of ETC airdrops lies in the possibility of acquiring free tokens with potential future value. Unlike traditional investments that require upfront capital, airdrops allow you to expand your crypto portfolio without any initial financial commitment. If the airdropped token gains traction and appreciates in value, you could reap significant rewards.

While the allure of free tokens is undeniable, Ethereum Classic (ETC) airdrops offer a wider range of benefits that extend far beyond the immediate gratification for recipients. These strategic marketing initiatives can have a profound impact on the health and growth of the entire ETC ecosystem. Lets delve deeper into how ETC airdrops contribute to a more vibrant and sustainable environment.

1. Increased Awareness and User Adoption:

2. Enhanced Network Activity and Utilization:

3. Fostering Innovation and Development:

4. Building Brand Loyalty and Advocacy:

It is important to acknowledge that not all airdrops are created equal. Here are some factors to consider for a more nuanced perspective:

When implemented thoughtfully and ethically, ETC airdrops can be a powerful tool for driving user adoption, fostering innovation, and propelling the entire Ethereum Classic ecosystem forward. By understanding the broader impact beyond the free tokens themselves, we can appreciate the strategic value airdrops bring to the table. As the ETC ecosystem evolves, airdrops will likely continue to play a significant role in shaping its future success.

The allure of free cryptocurrency through Ethereum Classic (ETC) airdrops is undeniable. However, before diving headfirst into claiming these tokens, a cautious approach is necessary. While airdrops offer a range of potential benefits, there are also inherent risks to consider. Heres a breakdown of the potential downsides to help you make informed decisions when encountering airdrops.

1. Scams and Phishing Attempts:

2. Worthless Tokens with No Utility:

3. Security Risks and Privacy Concerns:

4. Tax Implications:

Making Informed Decisions:

Airdrops can be a valuable tool for promoting user adoption and fostering innovation within the ETC ecosystem. However, its crucial to approach them with a critical eye and a healthy dose of skepticism. Here are some steps to take to mitigate the risks:

By understanding the potential risks and taking appropriate precautions, you can navigate the world of ETC airdrops more confidently. Remember, prioritize your security and do your due diligence before claiming any free tokens. Airdrops can be a valuable tool, but a cautious and informed approach is essential to maximize the benefits and minimize the risks.

The world of ETC airdrops can be a tempting proposition, offering the chance to acquire free cryptocurrency. However, not all airdrops are created equal. Before diving in, a critical evaluation process is crucial to separate genuine opportunities from potential scams or projects with little long-term value. Heres a roadmap to guide you through assessing an ETC airdrop:

1. Scrutinizing the Project Behind the Airdrop:

2. Understanding the Utility of the Airdropped Token:

3. Examining the Airdrop Distribution Process:

4. Considering the Potential Risks and Rewards:

By following these steps and conducting thorough research, you can effectively evaluate ETC airdrops and make informed decisions. Remember, a healthy dose of skepticism is essential. If something seems too good to be true, it probably is. Prioritize your security and focus on airdrops from established projects with clear goals and a well-defined role for the airdropped tokens within their ecosystem.

Beyond Evaluation: Additional Tips

By following these guidelines and maintaining a cautious yet curious approach, you can navigate the world of ETC airdrops and potentially benefit from valuable opportunities while minimizing the risks. As the ETC ecosystem continues to evolve, airdrops are likely to remain a prominent feature. By equipping yourself with the knowledge to evaluate them effectively, you can make informed decisions and participate in this exciting space with greater confidence.

Also, read Top 10 Ways NFT Airdrops Will Reduce Gas Fees And Benefit Both Creators And Users

Even after careful evaluation, responsible participation in ETC airdrops is crucial. Heres how to navigate the claiming process and the broader ecosystem ethically:

1. Claiming Responsibly:

2. Contributing to the Ecosystem:

3. Avoiding Unethical Practices:

ETCs airdrops can be a valuable tool for promoting user adoption, fostering innovation, and generating excitement within the ETC ecosystem. However, its crucial to remember that airdrops are a means to an end, not a shortcut to riches. By approaching them with a critical eye, prioritizing security, and participating responsibly, you can maximize the benefits and contribute positively to the overall health of the ETC ecosystem.

Here are some parting thoughts:

By following these guidelines and approaching ETC airdrops with a thoughtful and responsible perspective, you can navigate this exciting space and contribute to the continued growth and success of the Ethereum Classic ecosystem. Remember, knowledge is power. Equip yourself with the necessary information, and you can make informed decisions that benefit both yourself and the broader ETC community.

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A Deep Dive Into Ethereum Airdrops (ETC Airdrops) In 2024: Chasing Amazing Rainbows Or Unearthing Gems - Blockchain Magazine

The Securities and Exchange Commission will probably deny applications for Ethereum spot exchange-traded funds on May 23.

The lack of meaningful interaction with prospective issuers, coupled with Ethereums ambiguous regulatory status, have made analysts pessimistic about the chances.

Not to mention the SECs recent investigation into the Ethereum Foundation.

That means spot Ethereum ETFs probably wont see the light until the end of 2025, Bloomberg Intelligence ETF analyst Eric Balchunas told DL News.

Faced with a rejection, prospective ETF issuers like BlackRock, Fidelity, or Ark Invest have two options: either sue the SEC like Grayscale did for the Bitcoin spot ETFs, or file again at a later date.

Factoring into the equation is the US election. Should former President Donald Trump win a second term in the White House, the SEC is likely to face a change of leadership. And a new chair could be friendlier towards crypto than Gary Gensler.

If theres a new president, you file again, Balchunas said. Maybe you get approved. Or you sue. Either way, that will take a whole other year to play out.

The SEC spent years shooting down Bitcoin spot ETF applications before Grayscale filed a lawsuit against the regulator in protest in 2022.

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In September, a judge found that the SEC had acted in an arbitrary and capricious manner by denying the applications. Four months later, the Bitcoin ETFs were launched.

Still, its unlikely that the strategy will be replicated for Ethereum ETFs. For one, Grayscale will probably not bring the fire to the SEC a second time, Balchunas told DL News.

Lawsuits are expensive not just in terms of money, but in attention and bandwidth too. And after suffering massive outflows when its Bitcoin trust was converted into an ETF, it wouldnt be surprising if Grayscale did not aggressively pursue a conversion of its Ethereum trust.

Other prospective issuers, meanwhile, wont dare pick up the baton and sue the regulator themselves, Balchunas said.

None of these other firms want to piss off the SEC, Balchunas said. Grayscale was unique in that it wasnt a big ETF issuer. The rest of these firms have other things going on, and theyre more scared. Nobody else will step up, he added.

And why sue the SEC when the US presidential election, slated this November, may solve the problem?

With Trump leading in some polls, the odds that a new SEC chair will be appointed are higher than previously expected.

Trump is not necessarily pro-crypto, Balchunas said. Remember his previous SEC chief Jay Clayton didnt allow that ETF either. So hes not going to be like, lets just go crazy. But hell probably still be better for crypto and spot ETFs.

Assuming a new chair is appointed in April or May, and filings submitted immediately afterwards, that could bring the deadline for approval or rejection to somewhere around December 2025.

Alternatively, issuers could try to file as soon as the election is over or even before results are in to speed up the timeline.

And if Joe Biden wins?

In the past cycles, when they denied spot Bitcoin ETFs, there was usually a cooling off period for like a year where nobody did anything, Balchunas said. And then out of the blue someone is like, Oh, the hell with it and files again.

My guess is that issuers will take the summer, lick their wounds, just be bummed, and then see what happens in the election, he added.

Tom Carreras is a markets correspondent for DL News. Got a tip about Ethereum ETFs? Reach out at tcarreras@dlnews.com

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Why the US election will decide the fate of Ethereum ETFs - DLNews