“This is not a condemnation of staking writ large. This is a condemnation of Kraken’s staking program specifically.
He said the SEC’s move is an ‘obvious shot across the bow to others‘ that offer staking services to retail users in the U.S. However, he said, the circumstances might have been different had Kraken’s staking program been ‘merely a technological connective tissue to underlying protocol. Instead, what Kraken appears to have done is essentially run a program on top of what the underlying protocol itself spits out.‘
According to the regulator’s press release, ‘When investors provide tokens to staking-as-a-service providers, they lose control of those tokens and take on risks associated with those platforms, with very little protection.’
The exchange did not deny nor admit to any wrongdoing, Fallon noted.”
“On Friday, Republican Representatives Bill Huizenga (MI) and Patrick McHenry (NC) sent a letter to SEC Chair Gary Gensler, requesting documents into the agency’s investigation into FTX and handling of its founder and former CEO, Sam Bankman-Fried.
Since @garygensler won’t abide by his own polices to “come in and talk”, the House GOP will hold him accountable. Today, as promised, our oversight of the @SECGov begins with a request for documents surrounding their interactions with @SBF_FTX, @FTX_Official, and @TheJusticeDept.
The American people deserve transparency from you and your agency.
The letter asks that Gensler turn over all records and communications from and within the agency’s Division of Enforcement between November 2, 2022 and February 9, 2023, including communications to Gensler, SEC Division of Enforcement Director Gurbir Grewal, and the U.S. Department of Justice. The letter [also] calls into question the timing of Bankman-Fried’s arrest in the Bahamas on December 12, 2022, the day before he was set to appear before the House Committee on Financial Services.
Lawmakers have called out Gensler and the SEC for failing to prevent FTX’s sudden downfall in November, citing previous dealings between the SEC chair and Bankman-Fried as purported evidence that the agency should have had a clearer window into the exchange’s inner workings.“
See Also: ‘Agent of an anti-crypto agenda’ — Community slams Gensler over Kraken crackdown
“Ethereum developers agreed on Feb. 28 as the target date for pushing the Sepolia test network (testnet) through the Shanghai upgrade, the blockchain’s big upcoming move to allow withdrawals of staked ether (ETH).
Sepolia, a closed testnet for the Ethereum developers only, is the second such network to undergo the upgrade. Earlier this week, the Zhejiang testnet ran its own successful simulation of staked ETH withdrawals. There’s one more test network set to get the upgrade, and then the main Ethereum blockchain is expected to undergo the Shanghai hard fork next month.”
See Also: Polygon Exploring Use of ZK Technology for Main Chain, Co-Founder Bjelic Says
“Genesis Global Holdco, which filed for bankruptcy protection last month, unveiled the final details of a proposed plan to sell itself off alongside Genesis Global Trading to help parent Digital Currency Group pay off some of the firm’s creditors.
According to a proposal filed with a bankruptcy court on Friday, DCG will turn its equity in Genesis Global Trading over to Genesis Global Holdco, as part of an effort to sell both companies, and restructure an existing loan.”
“The Journal reported that financial services company Cantor Fitzgerald is helping Tether oversee a $39 billion bond portfolio comprised of United States Treasury securities. The report indicates that some firms on Wall Street are willing to support crypto service providers despite ongoing regulatory concerns facing the industry.
Founded in 1945, Cantor Fitzgerald specializes in investment banking services, including institutional equity and fixed-income sales.
Tether has grown to be the most important player in the digital assets industry and is collaborating and regularly exploring new business opportunities with high-quality counterparties.”
See Also: JPMorgan sees advantages in deposit tokens over stablecoins for commercial bank blockchains