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The U.S. Securities and Exchange Commission (SEC) is set to reject applications for cash Solana exchange-traded funds (ETFs). As reported by Fox News journalist Eleanor Terrett. The agency has already notified two of the five interested issuers that it will not consider new Cryptocurrency ETF proposals under the current administration.
🚨SCOOP: I’ve confirmed that the @SECGov has notified at least two of the five prospective issuers that it will reject their 19b4 filings for the $SOL spot ETFs.
The consensus here, I’m told, is that the SEC won’t entertain any new #crypto ETFs under the current administration.
— Eleanor Terrett (@EleanorTerrett) December 6, 2024
Among the applicants are VanEck, which submitted its application on June 27, and 21Shares, followed by Canary Capital in October, and Bitwise and Grayscale after the presidential election on November 6.
The process to launch cryptocurrency ETFs requires a formal application, known as a 19b-4, which details the structure and compliance of the product. However, the recent rejections do not spell the end for issuers, as they could seek approval under new SEC Chairman Paul Atkins, nominated by Donald Trump on December 4.
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Court documents reveal FDIC asked banks to stop cryptocurrency activities
Documents filed with the United States District Court for the District of Columbia have revealed that the Federal Deposit Insurance Corporation (FDIC) asked US banks to stop their cryptocurrency-related activities in 2022.
According to letters published on December 6, FDIC officials urged the boards of directors of certain institutions to “pause all activity related to crypto assets” due to regulatory uncertainty surrounding these assets.
The communications, in which the names of the banks involved have been crossed out. They also indicate that the FDIC planned to establish future guidelines for supervising activities with crypto assets.
These documents are part of a Freedom of Information Act (FOIA) lawsuit, filed by History Associates, with support from Coinbase. The legal action seeks to clarify alleged debanking practices of cryptocurrency companies.
Sky faces criticism for reliance on external accounts to manage USD Coin reserves
Sky, formerly known as MakerDAO, is facing questions due to its external account (EOA)-based custody model for managing $756 million in USD Coin reserves within its Lightweight Parity Stability Module (PSM Lite).
@SkyEcosystem (formerly MakerDAO) is letting an EOA custody 756M USDC for their “Lite PSM”. As far as I can tell, that account can rug the full balance any time.
— wjmelements (@willmorriss4) December 6, 2024
Critics of the model argue that relying on an EOA, a standard Ethereum wallet controlled by private keys, could expose funds to security risks. Including key compromises or misuse by internal actors.
These concerns have gained relevance following the protocol’s recent name change. And, discussions about the possible implementation of a funds freezing function.
The PSM Lite, designed to maintain the stablecoin’s parity with the dollar. Currently, it allows direct exchange between USDC and the stablecoin at a fixed rate. However, PSM Lite funds are also under the control of an EOA, which has intensified criticism of the protocol.
US Bitcoin ETFs Surpass Satoshi Nakamoto’s Estimated Holdings
For the first time, Bitcoin exchange-traded funds (ETFs) in the United States have accumulated more than 1.1 million BTC, more than the estimated holdings of the cryptocurrency’s pseudonymous creator, Satoshi Nakamoto.
BlackRock’s IBIT ETF leads with 408,870 BTC in holdings, followed by Fidelity’s FBTC with 241,850 BTC. And Grayscale’s recently converted GBTC with 213,200 BTC, according to data from The Block.
This milestone was achieved following a positive flow that generated more than $30 billion in inflows since January. Furthermore, Bitcoin’s price increase by 125% this year, reaching $100,000, has led to ETFs managing more than $100 billion in assets.
While Satoshi is still considered the largest holder of BTC, companies such as MicroStrategy, with 331,200 BTC, and the United States government, with 208,109 BTC seized, also stand out as important accumulators.
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