FIT21 Legislation Backed by 60 US Crypto Companies

The Breakdown First Five - Monday, May 20, 2024

Welcome back to The Breakdown First Five — the 5 most interesting and/or important stories in bitcoin, crypto, and markets to start your day.

5. Kraken Considering EU Tether Delisting

Kraken’s head of regulatory strategy said that the exchange is “actively reviewing” whether to delist Tether as new regulations come into force in the EU. Compliance won’t be required until December for exchanges, although Kraken may be targeting the first stage rollout at the end of June. Tether said it expects exchanges to “rightfully focus on euro liquidity” for local customers but maintain Tether as an on and off-ramp option. No decision has been made for now. 

4. Pump.Fun Exploiter Arrested

Last week’s Pump.fun exploiter has already been tracked down and arrested in London. The former contractor for the protocol was pretty well known, making him a relatively easy target for a private investigation firm. The firm described a 26-hour manhunt across London using open source intelligence to locate the exploiter. He continues to tweet while detained in hospital, largely accusing pump.fun of operating an unlicensed casino. 

3. Venezuela Mining Ban

Venezuela has banned crypto mining in an attempt to protect the power grid. The move follows an anti-corruption crackdown with over 2,000 mining rigs confiscated. Venezuelan authorities claim that Bitcoin mining was responsible for recent blackouts, although the grid has been unstable for over a decade. Most citizens do not pay for electricity under the communist regime, making rationing the only viable option. 

2. ETH ETF Hopefuls 

The SEC is set to decide on the ETH ETFs on Thursday and some are arguing that negative sentiment is overdone. Coinbase Research said that the market is “underestimating the timing and odds of a potential approval.” Their key point is that barring a claim that ETH is a security, the launch of ETFs is a matter of “when, not if.” Polymarket odds are still handicapping an approval this month at just 10%. Most analysts are certain of a denial. 

1. Crypto Gets FIT21

Sixty US based crypto firms have backed this week’s vote on market structure regulation, the FIT21 bill. Ji Kim of the Crypto Council of Innovation said that while no bill is perfect, this legislation at least put something in place that “protects consumers and ensures innovation stays in the US." The House vote is expected on Wednesday or Thursday and should be a strong signaling vote for Democrats who have long argued against legitimizing the industry with regulation.