Weekly Recap: Ethereum-ETF Approval and Telegram’s New Currency

Bitcoin failed to maintain its position above $70,000, with the mining difficulty of the leading cryptocurrency rising by nearly 1.5%. The SEC approved spot Ethereum-ETFs, the US House of Representatives passed FIT21, and other notable events unfolded over the past week.

Bitcoin Falls Below $70,000

The leading cryptocurrency began the week at $66,000. On Tuesday, May 21, digital gold surged above $71,000, but by May 23, it had corrected to $67,000.

At the time of writing, Bitcoin is trading below $69,000.

Most digital assets in the top 10 by market capitalization ended the week in the green. Exceptions were Solana (-3.1%) and Toncoin (-1%).

The total cryptocurrency market capitalization stands at $2.71 trillion. Bitcoin’s dominance index is 54.2%.

Bitcoin Mining Difficulty Rises by Nearly 1.5%

Following the latest recalculation, the mining difficulty of the leading cryptocurrency increased by 1.48% to 84.38 T.

The average hashrate since the previous adjustment was 705 EH/s. The interval between blocks shortened to approximately 8.5 minutes instead of the algorithm’s intended 10 minutes.

Despite the increase, the difficulty has not recovered from the nearly 6% drop following the halving.

SEC Approves Spot Ethereum-ETFs

On May 23, the US Securities and Exchange Commission (SEC) approved 19b-4 applications from issuers of spot exchange-traded funds based on Ethereum.

Among the approved companies are VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK Invest/21Shares, Invesco/Galaxy, and Bitwise. However, the regulator did not grant approval for Hashdex, whose application deadline is May 30.

Trading will commence once the SEC signs the registration statements on Form S-1.

Industry experts view the approval of Ethereum-ETFs as an “implicit acknowledgment” by the Commission that the asset is not a security.

Amid false rumors of a delay in the review of applications for the instrument, the asset’s price initially plummeted to $3,500, but after the approval of the exchange-traded funds, it soared to $3,900.

At the time of writing, Ethereum is trading at $3,845.

Analysts at Bernstein predicted Ethereum could rise to $6,600 following the approval of spot exchange-traded funds. Galaxy Digital CEO Mike Novogratz stated that prices will be “significantly higher than now.”

Topics to Discuss with Friends

• Bitcoin Pizza Day: contests on Binance and greetings from Paolo Ardoino.
• A crypto enthusiast raised the Bitcoin flag on Everest.
• The dog that became the symbol of Dogecoin has passed away.
• Traders profited from the new ATH of the meme token PEPE.

US House Passes Crypto Industry Regulation Bill

The US House of Representatives passed a bill on the structure of the crypto market, known as FIT21, aimed at regulating the industry as a whole.

The document received 279 votes in favor and 136 against. The Republican-backed bill was supported by 71 Democratic representatives, including former Speaker Nancy Pelosi.

“FIT21 is the first step towards creating a regulatory framework for digital assets, and it needs to be improved by working with the Senate and the administration. In creating a foundation for responsible innovation, we must take further steps to enhance consumer, investor, and taxpayer protection,” she stated.

The bill provides for the expansion of powers and funding for the Commodity Futures Trading Commission (CFTC) to oversee spot cryptocurrency markets and “digital commodities,” which include Bitcoin.

FIT21 also establishes a procedure allowing digital commodities to be traded on the secondary market if they were “initially offered as part of an investment contract.” The bill includes provisions on stablecoins and anti-money laundering measures.

Financial Services Committee Chairman Patrick McHenry noted that the SEC and CFTC are currently vying for control over the cryptocurrency market.

The bill now awaits Senate consideration, and if approved, it will be sent to the president for signature. The Biden administration had already expressed opposition to FIT21 before the vote, stating that it does not provide “sufficient protection for consumers and investors involved in certain digital asset transactions.”

However, the White House indicated its willingness to work with Congress on a “comprehensive and balanced regulatory framework for digital assets.”

Hours before the vote, SEC Chair Gary Gensler spoke out against FIT21. He argued that the document would create new regulatory gaps and undermine decades of precedents regarding the oversight of investment contracts.

Telegram to Introduce Internal Currency on TON Network

Starting June 12, the messaging app Telegram will implement an internal currency, Telegram Stars, for purchasing digital goods and services in bots and mini-apps.

The initiative follows a notification from Apple regarding a violation of App Store policies prohibiting internal payments from clients, including cryptocurrencies. Otherwise, bots and mini-apps faced removal.

Users will be able to purchase the new currency in the App Store or Google Play and then use it for digital purchases. Payments for physical goods and services remain unchanged.

Developers will be able to withdraw Telegram Stars at any time using the TON blockchain.

Also on ForkLog:

• Notcoin introduced missions for earning tokens.
• Media reported on MetaMask working on Bitcoin integration.
• A trader who made $1 million on the MAGA token was suspected of insider trading.
• Michael Sonnenshein stepped down as CEO of Grayscale.

Donald Trump Promises to Pardon Ross Ulbricht

Former US President and Republican candidate for the upcoming elections, Donald Trump, expressed support for the digital asset industry.

“I am very positive and open to crypto companies and everything related to this new and growing industry. Our country must be a leader in this field. No second place. Dishonest Joe Biden, on the other hand, the worst president in our country’s history, wants [the crypto industry] to die a slow and painful death. This will never happen under me!” Trump wrote.

During a speech at the National Libertarian Party Convention, the politician stated that the future of cryptocurrencies and Bitcoin “will be created in the USA.”

Trump also promised to free Silk Road darknet market founder Ross Ulbricht if elected president.

“If you vote for me, on the first day, I will commute Ross Ulbricht’s sentence to time served. He has already served 11 years, we will bring him home,” he said.

What Else to Read?

This week, ForkLog explored whether Solana will rise to $400 following the release of Firedancer.

In the traditional digest, we compiled the main events of the week in the field of cybersecurity.