The anticipation in the cryptocurrency market continues, with hopes for positive steps from the U.S. regarding Bitcoin ETF applications, leading to potential gains for investors. The week of December 18-25 saw significant developments in the sector, with regulatory decisions and legal proceedings making headlines.
The U.S. Securities and Exchange Commission (SEC) postponed decisions on the Hashdex Nasdaq Ethereum ETF and Grayscale Ethereum Futures ETF until May 2024. The Hashdex ETF aims to hold both spot Ethereum and futures contracts, while Grayscale’s product is seen as a strategic move to pressure the SEC into converting its Ethereum Trust into a spot ETF.
The SEC has initiated processes to collect more public input on ETF listings and has withdrawn its decision on the VanEck spot Ethereum ETF application and another by Cathie Wood’s ARK Invest and 21Shares. Analysts predict that a Bitcoin spot ETF approval may not occur until early 2024, despite applicants’ efforts to update their filings.
In the case of Terraform Labs co-founder Do Kwon, a Montenegrin court canceled his extradition approval to the U.S. or South Korea. The appellate court’s decision mandates a review and return of the case to the Podgorica Basic Court, highlighting significant legal procedure violations in the previous ruling.
In a separate legal development, a U.S. court ruled against the cryptocurrency exchange Binance and its former CEO Changpeng Zhao, resulting in Binance paying $2.7 billion and Zhao $150 million to the Commodity Futures Trading Commission (CFTC). This settlement concludes a long-standing case against Zhao and Binance for operating an illegal futures exchange and evading federal laws.
China’s General Administration of Press and Publication (GAPP) aims to restrict activities related to in-game token projects. Proposed regulations include banning the exchange of game tokens for physical goods or fiat currency, requiring companies to obtain licenses, store customer data, ensure content aligns with national values, and eliminate anonymous user registrations. Notably, the regulations prohibit the use of game tokens for purchasing physical goods or exchanging services, leaving room for speculation regarding the crypto market, which is not explicitly addressed in the guidelines.