Gary Gensler’s job in jeopardy, BlackRock’s first spot Bitcoin ETF…

Top stories this week

US lawmakers file “SEC Stabilization Act” to fire Gary Gensler

US Representative Warren Davidson has introduced the “SEC Stabilization Act” in the House of Representatives. One of the bill’s main provisions is to fire Securities and Exchange Commission (SEC) Chairman Gary Gensler. The bill would remove Gensler from office and redistribute power between the SEC chairman and the commissioners. It would also add a sixth commissioner to the agency, deny one party from having a majority on the commission and create an executive director position. The SEC declined to comment on the matter.

BlackRock applies for spot Bitcoin ETF ̵[ads1]1; an American first if approved

BlackRock, the world’s largest investment company, has submitted an application for a Bitcoin spot exchange traded fund (ETF). It will be the first crypto spot ETF in the US, if approved. According to the filing, Coinbase Custody Trust Company will be the custodian of the fund, and Bank of New York Mellon will hold its fiat. The SEC has not approved a spot Bitcoin ETF so far despite many applicants. The world’s first spot-traded Bitcoin ETF was Canada’s Purpose Bitcoin ETF, created in early 2021.

Binance CEO Changpeng Zhao dismisses rumors of selling Bitcoin to bolster BNB

Binance CEO Changpeng “CZ” Zhao has refuted allegations that Binance has been secretly selling Bitcoin (BTC) to artificially stabilize the price of the BNB token. The rumors have come from several market commentators in recent days, who accuse the exchange of intentionally manipulating the market to artificially inflate the value of BNB. CZ said that Binance had not sold any of its BTC or BNB, adding that the crypto exchange still had “a bag” of FTX Token – the original token of the now-defunct crypto exchange FTX.

SEC’s Gensler says BTC, ETH ‘not securities’ in newly surfaced video

A newly surfaced 2018 video featuring Gary Gensler has been making the rounds on social media, showing the current head of the US Securities and Exchange Commission once again saying that several cryptocurrencies are not securities. “Over 70% of the crypto market is Bitcoin, Ether, Litecoin, Bitcoin Cash. Why did I name those four? They are not securities,” Gensler says in the video, which is believed to be from a 2018 event hosted by Bloomberg for institutional investors. On the At the time Gensler was a professor at the Massachusetts Institute of Technology, the video contrasts with his more recent actions as chairman of the SEC.

Binance​.US Hires Former SEC Enforcement Official Under Trial

Former SEC enforcement official George Canellos has reportedly been hired by Binance.US as part of the legal team defending the company against allegations of operating as an unregistered securities exchange. In response to the SEC’s action on June 5, Binance.US announced the suspension of US dollar deposits and a potential pause in fiat withdrawals, citing “extremely aggressive and scare tactics” by regulators. On Twitter, a former SEC chief said the exchange is “clearly preparing for a criminal prosecution and continues to hire the best defense lawyers in the world.”

Winners and losers

At the end of the week, Bitcoin (BTC) is at $26,349Ether (ETH) on $1716 and XRP on $0.47. The total market value is at $1.06 trillion, according to CoinMarketCap.

Among the top 100 cryptocurrencies, this week’s top three altcoin winners are KuCoin Token (KCS) at 9.75%, Maker (MKR) of 8.08% and quant (QNT) of 4.10%.

The top three altcoin losers of the week are EOS (EOS) of -29.88%, ApeCoin (MONKEY) at -26.07% and Flow (FLOW) of -25.93%.

For more info on crypto prices, be sure to read Cointelegraph’s market analysis.

Most memorable quotes

“Inflation is moving in the right direction, but the comments from Jerome Powell indicate that prices may stay higher for longer, which will put Bitcoin on the back foot.”

Josh Gilbertmarket analyst at eToro

“Requiring a DEX to register in the same way as a national stock exchange is impossible.”

Paul Grewallegally responsible for Coinbase

“The US capital markets must be protected from a tyrannical chairman, including the current one. It is time for real reform and to fire Gary Gensler as SEC chairman.”

Warren DavidsonUnited States representative

“The addressable market for digitizing the world’s assets and transferring value securely over the internet is greater than the sum of all the value of all existing assets.”

Emin Gun SirerCEO of Ava Labs

“The banking system is failing. The old economic system is failing. […] Nothing works. Only Bitcoin works.”

Samson MowCEO in Jan3

“Over 70% of the crypto market is Bitcoin, Ether, Litecoin, Bitcoin Cash. Why did I name those four? They are not securities.”

Gary Genslerchairman of the US Securities and Exchange Commission

Prediction of the week

Bitcoin price eases downside as traders call for support at $24.5K

Bitcoin regained some lost ground by the end of the week as markets shook off mixed US macro signals.

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD circulating $26,000 on June 16 after jumping over $1,000 from the previous day’s low as it fell below $25,000 for the first time in three months. The 4% drop came as the Federal Reserve pushed for a pause on interest rates, but hinted that more hikes would come later this year.

On short time frames for BTC/USD, traders remain cautious about the risk of further declines. “Still in the interest range but need to maintain above $24.5K to avoid a cascade to $23k,” wrote Michaël van de Poppe, founder and CEO of trading company Eight.

FUD of the week

Curve pool imbalance sparks concerns for USDT depeg, Tether CTO calls it FUD

The Tether (USDT) stablecoin deviated slightly from its US dollar peg on June 15 due to an imbalance in the Curves 3pool. The price of USDT fell 0.3% to around 0.997 as the weight in the Curve 3pool increased to over 70% from the usual 33.1%. A significant increase in the weight of a stablecoin in the pool indicates heavy selling of that asset. Tether’s Chief Technology Officer, Paolo Ardoino, took to Twitter to assure that depegen is nothing to worry about and that it is ready to redeem any amount.

Leaders of the decentralized autonomous organization that governs the ApeCoin ecosystem have been criticized by community members for what they described as “insane” salaries. An organizational chart showed salaries ranging from $7,000 to $75,000 per month, which shocked some community members and prompted a flurry of inquiries from others. According to one board member, the compensation corresponds to “the responsibilities and accountabilities of the role.”

“Who the Hell” Is Prometheum, and What Did It Tell Congress About SEC Compliance?

Relatively under-the-radar crypto company Prometheum has been thrust into the spotlight following recent testimony from its co-founder, Aaron Kaplan, before a US House committee debating crypto regulatory clarity. Kaplan’s testimony advocated regulating crypto under current securities laws — a view also shared by the SEC. He argued that several frameworks provided by the SEC have “clearly laid out” a “compliant path forward for crypto,” adding that those arguing for new crypto-specific laws are “simply unwilling to comply.”

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Cointelegraph Magazine writers and reporters contributed to this article.