21 September

“In a bold and potentially unprecedented move buried in the lawsuit’s 69th paragraph, the SEC today claimed it had the right to sue Balina not only because his case concerns transactions made in the United States, but also because, essentially, the entire Ethereum network falls under the US government’s purview.

In its complaint, the regulator noted that the ETH sent to Balina was ‘validated by a network of nodes on the Ethereum blockchain, which are clustered more densely in the United States than in any other country. As a result, those transactions took place in the United States.’

The SEC appears to be suggesting that, because more of Ethereum’s validating nodes currently operate in the United States than in any other country, all Ethereum transactions globally should be considered of American origin. Currently, 45.85% of all Ethereum nodes operate from the United States, according to Etherscan.

Saying that enables [the SEC] to characterize doing business on the Ethereum blockchain, as doing business on a US securities exchange.

Such a development would constitute a major escalation in the SEC’s role in overseeing both Ethereum, specifically—where the vast majority of NFT and DeFi activity takes place—and crypto as a whole. Fyre noted that the language of today’s complaint bears no legal weight, and due to the nature of the SEC’s suit against Balina, the court in this case is unlikely to weigh in on this specific issue.

Under Gensler, the SEC has yet to take an official stance on Ethereum, despite leadership within the Commission under the previous administration suggesting that Ethereum was “sufficiently decentralized” and therefore not a security.”

See Also: Crypto Needs ‘Global Regulatory Framework,’ IMF Says
See Also: US Treasury official says crypto mixers are a ‘concern’ in enforcing sanctions
See Also: Hearing: Alternative payments’ threat to national security goes far beyond crypto

Nasdaq (NDAQ), the second-largest U.S. stock market operator, is starting a cryptocurrency custody service as it aims to cash in on the demand from institutional crypto investors, according to a press release on Tuesday.

Demand among institutional investors for engaging in digital assets has increased in recent years, and Nasdaq is well-positioned to accelerate broader adoption and drive sustainable growth.

Nasdaq’s move into crypto follows a wider trend across Wall Street. Last month, BlackRock, the world’s largest asset manager, said it will offer cryptocurrencies to its institutional clients, and Depository Trust & Clearing Corp., which processes almost all U.S. stock market trades, released its own blockchain as it looks to speed up the settlement of trades.

Nasdaq will compete with crypto exchange Coinbase and crypto custodians sAnchorage Digital and BitGo in holding bitcoin (BTC) and ether (ETH) for institutional clients in the U.S.”

See Also: New Crypto Exchange EDX Aims to Bring What Old Crypto Hates: Wall Street Intermediaries

“The Ethereum Merge has been completed and despite “high anticipation” around the transition, volatility remained subdued, Citi (C) said in a research report Friday. Ethereum is now 99.95% more energy efficient than when it used a proof-of-work (PoW) process, the report said.

Citi says ether has become a yield-bearing asset following the removal of mining, with current staking yield about 4.5%. This yield is higher than some traditional financial instruments, it said.

Following the transition, miners are no longer being issued rewards, the bank said, noting that these rewards equated to a supply of 4.9 million ether (ETH) a year. ETH issuance is estimated to drop 90% to around 600,000, and total supply on the first day of the Merge fell as the fees burnt were larger than rewards issued to validators, it added.

Meaningful scaling will likely come as a result of the Surge, the next planned upgrade, which could be introduced next year. Network activity has increased slightly as ETH now produces a yield for validators. However, fees have remained relatively low as activity is still modest versus historical levels, the note added.”

See Also: Ethereum miners dump 30K ETH, stonewalling ‘ultra sound money’ deflation narrative

Gaevoy said the company remains solvent, with “twice over” $160 million remaining in equity.

Founded in 2017, Wintermute trades billions of dollars across crypto market daily as it provides liquidity across multiple venues. The firm’s lending and over-the-counter (OTC) services have not been affected.”

See Also: Hacked Crypto Market Maker Wintermute Has $200M in Outstanding DeFi Debt
See Also: Alameda to Repay $200M in Bitcoin and Ethereum to Bankrupt Crypto Broker Voyager
See Also: BNB Chain, Blockchain Security Firms Start AvengerDAO to Protect Users

“Colorado residents can now pay state taxes with cryptocurrencies using PayPal. The option allows residents to use crypto to pay for personal income tax, business income tax, severance tax and withholding tax.

While PayPal lets users deposit, withdraw and hold a variety of cryptocurrencies, the settlement of its crypto checkout service is in U.S. dollars. Several other U.S. states, including Florida and Ohio, have tested accepting crypto for tax payments.”

“OpenSea, the largest non-fungible token (NFT) marketplace by volume, said Tuesday it’s planning to support Arbitrum, allowing creators to list NFTs minted on the Ethereum roll-up. OpenSea currently offers NFTs minted on Ethereum, Polygon, Klaytn and Solana.

This is a first step in building our goal of a Web3 future where people have access to the NFTs they want on the chains they prefer.”